Shares in Diebold Inc. fell Monday after the North Canton, Ohio, automated teller machine company was downgraded over concerns about its voting machine operations.
Matt J. Summerville, an analyst with KeyBanc Capital Markets Inc. downgraded the stock to "hold," from "buy." In a research note published Monday, he lowered his earnings forecasts by 2 cents for the second quarter, to 34 cents a share, and by 20 cents for the full year, to $2.02.
There appear to be "significant headwinds for manufacturers of electronic voting machines, particularly those that focus heavily on touch-screen terminals," Mr. Summerville wrote. He contacted secretary of state offices in several states, and some, including New York, "appear increasingly unlikely to purchase new voting equipment."
A contract with New York was "likely included" in Diebold's full-year top-line guidance, Mr. Summerville wrote.
By Monday afternoon, Diebold's stock had dropped 4.26% from Friday's close, to $47.69 a share.
