On Wednesday, investors will find out more as the company reports its fiscal second-quarter earnings. While some are betting on an upside surprise, the Street is not as optimistic. Analysts are calling for an 8% decline in revenue and a 26.6% drop in earnings per share. The company is coming off a decent first quarter where both revenue and earnings per share exceeded estimates. Given the uncertainty created by Bergeron's departure, however, it wouldn't be surprising if the company missed both targets for its second quarter. Besides, the macro environment hasn't been good. Retail figures from end users of point-of-sale terminals such as Wal-Mart ( WMT), Target ( TGT) and McDonald's ( MCD) have shown reduced customer traffic. These businesses now understand that in order to grow, they have to reduce transaction time. That is why self-pay kiosks have become more popular. But if an iPhone app can fulfill the service criteria, traditional payment-processing companies can become extinct.
VeriFone's current valuation looks interesting for those who want to play a short-term trade. But I would be careful about getting trapped here. I don't believe that the long-term prospects are as promising as they once were - not with products such as Intuit's ( INTU) Go Payment growing in popularity. However, as I've said nine months ago and recently repeated here, the biggest overhang for VeriFone is Apple. Soon, like Visa, the iPhone will be "everywhere you want to be." At the time of publication, the author held shares of Apple and had no position in any of the other stocks mentioned. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.