NEW YORK (TheStreet) -- Shares of VeriFone Systems (PAY) are rising 1.92% to $27.66 late Monday morning ahead of the company's 2016 fiscal second quarter results, due out after tomorrow's closing bell.
Wall Street is expecting the San Jose, CA-based electronic payments company to report earnings of 52 cents per share on revenue of $530.1 million.
During the same period last year, VeriFone posted earnings of 44 cents per diluted share on revenue of $490 million.
Pacific Crest Securities maintained its "overweight" rating and $36 price target on the stock ahead of the results.
"We expect solid results and see room for a modest beat and raise in line with the beat, but expect an ongoing transition in China and Brazil and product expansion to limit the magnitude of upside," the firm wrote in a note to investors.
"That said, we remain positively biased on the midterm outlook as steady execution should drive improved confidence in the sustainability of mid-teens or better EPS growth, which warrants a market multiple, in our view," Pacific Crest added.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income.
However, the team also finds weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PAY