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VeriFone Shares Tumble on Q3 Forecast (PAY)

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VeriFone Systems Inc. (NYSE: PAY) shares tumbled on Friday after the San Jose, California-based company gave a weak outlook for the third quarter.

PAY shares fell to an intra-day low of $37.20 on Friday before finishing the day 15.49% lower at $38.03 on above average volume of 25.81 million.


After-market close on Thursday, VeriFone said that it expects third-quarter adjusted earnings to come in between $0.68 per share and $0.70 per share. Revenue for the quarter is expected to come in between $495 million and $500 million. This compares with Street estimate of adjusted earnings of $0.70 per share and revenue of $501.9 million.

Robert Dykes, CFO of VeriFone Systems, said that demand should remain strong, but PAY’s revenue is being hurt because the euro and other currencies are weakening relative to the dollar and that affects the company’s sales in overseas markets. Dykes noted that the recent strength of the dollar has taken away the increase would otherwise have reflected in the company’s guidance.

The weaker than expected outlook for the third quarter overshadowed VeriFone’s second-quarter results, which came in ahead of Street estimate.

For the second quarter, VeriFone reported second-quarter net income of $14.49 million, or $0.13 per share. Non-GAAP net income for the quarter was $0.64 per share, up from $0.46 per share reported for the same period in the previous year. Analysts were expecting the electronics payment company to report earnings of $0.61 per share for the quarter.

Net revenue for the quarter came in at $472.02 million, up from $292.45 million reported for the same period in the previous year. Analysts were expecting the company to report revenue of $471.82 million.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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