Market Overview

VeriFone Rises After Q3 Results (PAY)

Related PAY
Topeka Intiates Coverage On Visa, Verifone
Benzinga's Volume Movers

VeriFone (NYSE: PAY) is up more than two percent after reporting its third-quarter results.

The company reported an EPS of $0.24, which may not compare to Wall Street's estimate of $0.49. Revenue came in at $416 million, which may not compare to Wall Streeti's estimate of $9.66 billion.

"Our revenues and earnings exceeded our guidance, cash flow exceeded our expectation, and we paid down $160 million of debt, bolstering our financial position," Richard McGinn, Interim Chief Executive Officer, said in a company release.

"We are also pleased by the acquisition of ENZ, which extends to New Zealand our payment-as-a-service business model that is thriving in the Nordics under Point and launching in other geographies such as the U.S. In fact, Q3 Services revenues were up 17% from a year ago. And, with our increased investments in R&D and infrastructure, we are making good progress in bringing to market the advanced products to meet customer demand."

VeriFone expects to report a fourth-quarter EPS of $0.25, in-line with Wall Street's estimate. The firm expects sales to fall within the range of $418 million to $422 million versus Wall Street's estimate of $412.9 million.

Related: Will VeriFone's $1 Billion Acquisition Pay Off?

Once a thriving stock on Wall Street, VeriFone has proven to be one of the year's biggest losers, dropping more than 31 percent since January 2.

While the firm rose in value last March after announcing that Doug Bergeron would leave his post as CEO, the company continued to endure losses in the months that followed.

In April, Compass Point analyst Douglas Greiner expressed his disappointment with the stock.

"The lack of investor demand reflects lingering near-term concerns that warrant caution heading into the upcoming quarter," he wrote in a report. "We see significant downside risk in the event of any negative surprise. Consequently, we prefer to be conservatively postured heading into earnings and downgrade our rating from Buy to Neutral."

Earlier this summer, Karen Finerman -- host of CNBC Fast Money host and the co-founder and President of Metropolitan Capital Advisors -- told Benzinga that VeriFone was in "no man's land."

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ

Posted-In: CNBC Fast Money Compass Point Doug Bergeron Douglas Greiner Karen Finerman Metropolitan Capital AdvisorsEarnings News

 

Related Articles (PAY)

Around the Web, We're Loving...

Get Benzinga's Newsletters