VeriFone Systems (PAY) Stock Slipping in After-Hours Trading Despite Earnings Beat

NEW YORK (TheStreet) -- Shares of VeriFone Systems Inc (PAY) were slipping, lower by 1.64% to $37.69 in after-hours trading Thursday, following the company's fiscal second-quarter earnings release after the closing bell.

The company earned 44 cents per share, topping analysts' earnings expectations of 42 cents per share.

Revenue came in at $490.3 million for the period, compared to the $489 million analysts had forecast, according to Thomson Reuters.

Looking ahead, the maker of terminals for electronic payments forecast earnings for the current quarter ending in July of between 44 cents to 46 cents per share.

Revenue is expected to come in between $495 million to $500 million for the fiscal third quarter.

For the full year, VeriFone expects earnings in the range of between $1.81 to $1.84 per share on revenue of $2 billion.

Shares closed at $38.32 in Thursday's regular trading session.

San Jose, Calif.-based VeriFone is engaged in the secure electronic payment solutions.

Its system solutions consist of point of sale electronic payment devices that run its and third-party operating systems, security and encryption software, and certified payment software, as well as other third-party value-added applications.

Separately, TheStreet Ratings team rates VERIFONE SYSTEMS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate VERIFONE SYSTEMS INC (PAY) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."

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