UPDATE 1-Diebold Q1 EPS beats estimates; reaffirms FY 2010 view

Tue Apr 27, 2010 9:27am EDT

* Q1 adj. EPS $0.34 vs est $0.30

* Q1 rev falls 6 pct to $619 mln; misses est $638.7

* Reaffirms FY 2010 rev and EPS outlook

April 26 (Reuters) - Automated teller machine maker Diebold Inc (DBD.N) posted quarterly results that beat estimates helped by a strong services segment and gross margin improvement and reaffirmed its full-year 2010 outlook.

The company said it continues to expect adjusted earnings of $1.90 to $2.15 per share and expects revenue to grow 4 percent to 9 percent.

The implied revenue forecast of $2,827.0 million to $2962.9 million, is largely above analysts' expectations of earnings of $2 per share on revenue of $2,844.4 million, according to Thomson Reuters I/B/E/S.

For the first quarter the company posted net income of $23.9 million, or 36 cents per share, compared with $1.6 million or 2 cents per share, last year.

Excluding items, the company earned 34 cents a share.

Total revenue fell 6 percent to $619 million.

Analysts, on average, were looking for earnings of 30 cents a share on revenue of $638.7 million, according to Thomson Reuters I/B/E/S.

Services revenue rose 3 percent to $267.8 million.

Gross margin rose 2.3 percentage points from last year to 25.5 percent, helped by improvements in service operations, Diebold said.

Shares of the North Canton, Ohio-based company, which have risen 36 percent in the last one year, closed at $34.21 Monday on the New York Stock exchange. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Roshni Menon)

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