VeriFone Down 4% After Q4 Earnings Beat
VeriFone Systems (NYSE: PAY) is down more than four percent in after hours trading after the company announced its fourth quarter results.
The company reported a Q4 EPS of $0.27 versus the Street estimate of $0.26.
Earnings per share were down 64 percent from the year-ago period.
Revenue came in at $432 million versus the Street estimate of $421.36 million. Sales were down 12 percent year-over-year.
"I am pleased with our fourth quarter results, which exceeded our guidance," Paul Galant, Chief Executive Officer of VeriFone, said in a company release.
"We are witnessing the scale convergence of electronic payments, mobility, digital commerce and predictive analytics, and this is an exciting time to lead VeriFone. The company has a global franchise, a growing services business, and a leadership position in enabling commerce for our clients. There is much work to do, and I am confident that the best for VeriFone is yet to come."
VeriFone has been hit hard by investors this year, plummeting more than 42 percent on February 21. Before the plunge, VeriFone traded above $30 a share.
The stock has yet to recover. It has experienced a few gains, but VeriFone is still down more than 16 percent year-to-date.
VeriFone rose more than two percent when the company reported its third quarter results on September 5. The stock has performed better this fall than it did in the first half of the year, rising more than nine percent since September.
The company expects to report a first quarter EPS of $0.26 -- notably lower than the Street's estimate of $0.32. Sales are expected to be between $425 million and $430 million versus the Street estimate of $430 million.
Further, VeriFone anticipates an FY2014 EPS between $1.35 and $1.40 versus the Street estimate of $1.56. Sales are expected to be between $1.77 billion and $1.8 billion versus the Street estimate of $1.79 billion.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
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