DIEBOLD INC. $30 - New York symbol DBD

DIEBOLD INC. $30 (New York symbol DBD; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 65.0 million; Market cap: $2.0 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.7%; TSINetwork Rating: Average; www.diebold.com) continues to move ahead with a major restructuring aimed at improving its efficiency and shifting its focus from building automated teller machines to services and software.

The changes should save Diebold a total of $200 million by the end of 2017. It plans to devote $100 million of that to acquisitions and other investments.

Meantime, Diebold’s earnings fell 46.6% in the three months ended June 30, 2015, to $22.2 million, or $0.34 a share. A year earlier, it earned $41.6 million, or $0.64. If you exclude restructuring costs, earnings per share declined 6.4%, to $0.44 from $0.47. However, its gross profit margin improved to 26.0% from 25.5%.

Revenue was flat at $733.4 million as gains in North America offset declines in Europe, Asia and Latin America. Without currency rates, revenue rose 7.8%.

The company should earn $1.80 a share in 2015, and the stock trades at a reasonable 16.7 times that estimate. The $1.15 dividend yields 3.8%.

Diebold is a buy.

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