The stock of Diebold Nixdorf (DBD 18.18, -0.32, -1.7%), which is a provider of software-defined solutions that enable connected commerce for consumers across the financial and retail industries, was down 26.4% year-to-date as of Tuesday's close and down approximately 55% from the high it reached in April 2014. We can't say for certain that's the reason why the company announced its CEO, Andy Mattes, is stepping down, effective immediately, yet it probably had something to do with it.
Oftentimes when an executive officer departs immediately -- and particularly the CEO -- it is noted in the press release that the move was made for personal reasons, for medical reasons, or to accept a similar position at a different company.
None of those disclaimers made it in the press release issued by Diebold Nixdorf. Mr. Mattes was simply thanked for his contributions over the past several years, including overseeing the acquisition of Wincor Nixdorf AG in August 2016, and it was announced that Christopher A. Chapman, CFO, and Juergen Wunram, COO, will serve as interim co-Presidents and co-CEOs until a permanent CEO has been named.
Heidrick & Struggles (HSII 23.80, +0.30, +1.3%) has been retained by the company to help conduct the search for a new CEO.
The impression one is left with, then, is that the board chose to oust Mr. Mattes.
The news of Mr. Mattes's departure did not coincide with an earnings warning. On the contrary, Diebold Nixdorf reaffirmed its full-year 2017 guidance of approximately $4.6 billion in revenue, adjusted EBITDA of $370 million to $380 million, and non-GAAP EPS in the range of $1.05 to $1.15.
Notwithstanding the reaffirmation of guidance, shares of DBD have declined another 1.7% today, underscoring investors' lack of confidence in the notion that a change in leadership will lead to a quick change in the company's operating fortunes.