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VeriFone Slumps on Weak Q3 Guidance

NEW YORK (TheStreet) -- Shares of VeriFone Systems (PAY) 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

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