NEW YORK ( TheStreet) -- Shares of Verifone Systems (PAY - Get Report) rose in extended trades on Tuesday after the electronic payment technology company topped Wall Street's expectations for its fiscal first-quarter results.
Getting a lift from growth in mobile payments, San Jose, Calif.-based Verifone reported an adjusted profit of $39.5 million, or 43 cents a share, for the three months ended Jan. 31 on revenue of $283.8 million, beating the average estimate of analysts polled by
Thomson Reuters for earnings of 39 cents a share in the January period on revenue of $270.1 million.
The stock was last quoted at $46.20, up 3.6%, on volume of nearly 260,000, according to Nasdaq.com. Based on a regular session close at $44.61, the shares had already gained almost 18% since the start of 2011 and has soared more than 130% in the past year, hitting a 52-week high of $49.91 on Feb. 17.
"VeriFone posted a remarkable first quarter with record revenue, accelerating growth rates, and expanding margins," said Douglas Bergeron, the company's CEO, in a press release. "Every region grew by a double digit percentage, and our transformational service initiatives made significant advances in the quarter."For the second quarter ending in April, Verifone sees adjusted earnings of 42 to 43 cents a share on revenue of $280 million to $284 million vs. the average analysts' view for a profit of 40 cents a share on revenue of $276.1 million. For fiscal 2011, the company expects adjusted earnings of $1.75 to $1.80 a share on revenue of $1.15 billion to $1.16 billion. The current consensus estimate is for earnings of $1.70 a share for the year ending in October on revenue of $1.14 billion. Wall Street was mildly bullish about the stock ahead of the report with a single analyst at buy, two at strong buy and five at hold and a 12-month median price target of $43. At current levels, the forward price-to-earnings multiple on the stock sites at 22X vs. a forward multiple of 13.4X for the S&P 500.