VeriFone Falls More Than 30% After Profit Warning
VeriFone Systems (NYSE: PAY), which had seen its stock fall more than 30 percent as of Wednesday's close, was trading down another 32 percent in the after-hours in the wake of a profit warning from the company. VeriFone also announced preliminary financial results for its fiscal first-quarter.
The company said that it expects to report Q1 adjusted earnings per share of $0.47 to $0.50 on revenue of $425 million to $430 million. This is well below current consensus estimates of $0.73 on revenue of $492.46 million for the first-quarter.
The results are also a considerable step down from the company's Q1 guidance calling for EPS of $0.70 to $0.73 on revenue of $490 million to $500 million.
Looking ahead, VeriFone said that it now sees adjusted net income of $0.45 to $0.50 on revenue of $435 million to $450 million for the second-quarter. This compares to current consensus of $0.80 on revenue of $514.17 million.
In addition, the company said that it expects sequential net income per share and revenue growth in Q3 and Q4.
VeriFone also said that it is conducting a review of its operating plan in light of the current challenges. VeriFone cited weak economic conditions in Europe, as well as lower than expected sales to large Brazilian customers for the profit warning.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.