This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

VeriFone Slumps on Weak Q3 Guidance

NEW YORK ( TheStreet) -- Shares of VeriFone Systems (PAY - Get Report) fell sharply in late trades after the electronic payments company offered up a soft outlook for the current quarter.

The San Jose, Calif.-based company forecast non-GAAP earnings of 68 to 70 cents a share for its fiscal third quarter ending in July on revenue ranging from $495 million to $500 million. That view has some downside to the current average estimate of analysts polled by Thomson Reuters for a profit of 70 cents a share on revenue of $502.2 million.

For its fiscal year ending in October, VeriFone sees non-GAAP earnings of $2.60 to $2.66 a share on revenue ranging from $1.9 billion to $1.925 billion. Wall Street's current consensus view is for a full-year profit of $2.66 a share on revenue of $1.924 billion.

The guidance overshadowed what was a solid second-quarter performance for the company, which reported earnings of 64 cents per share on $472 million in sales, up 64% year-over-year. That compared to the average analysts' view for earnings of 61 cents a share on revenue of $471.8 million.

CEO Douglas G. Bergeron was positive on the quarter.

"We are very pleased with our performance, particularly the acceleration in organic growth and the increase in Hypercom-brand sales," Bergeron said in the press release. "We remain confident in our outlook for the year. VeriFone is continuing to prove that widespread incumbency combined with market-leading innovation is a winning formula for the payments marketplace."

Shares of VeriFone lost 3.64% during the regular session to close at $45.00. The stock was last quoted at $41.55, down 8%, on after-hours volume of more than 715,000, according to Nasdaq.com.

Interested in more on VeriFone? See TheStreet Ratings' report card for this stock.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
PAY $33.89 -0.67%
AAPL $126.44 -0.13%
FB $87.28 0.43%
GOOG $523.40 0.30%
TSLA $280.02 4.04%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs