UPDATE: VeriFone Posts 86% Drop In Q4 Profit, Issues Downbeat Q1 Forecast
VeriFone Systems (NYSE: PAY) reported an 86% drop in its fiscal fourth-quarter profit and issued downbeat first-quarter forecast.
For its first quarter, the company projects adjusted earnings of $0.70 to $0.73 per share on adjusted revenue of $490 million to $500 million. However, analysts were expecting earnings of $0.75 per share on revenue of $498 million.
VeriFone's quarterly profit fell to $27 million, or $0.24 per share, from $198.8 million, or $1.84 per share, in the year-ago period. Excluding one-time items, it earned $0.76 per share.
Its revenue climbed 18% to $485.4 million. Its adjusted revenue climbed 18% to $488.6 million VeriFone in September expected adjusted earnings of $0.75 to $0.77 per share on adjusted revenue of $495 million to $500 million.
VeriFone's gross margin rose to 41.1% from 30.7%.
VeriFone shares dropped 7.37% to $30.78 in the after-hours trading session.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.