VeriFone Posts Upbeat Q3 Results, But Issues Weak Forecast
VeriFone Systems Inc (NYSE: PAY) reported better-than-expected results for its fiscal third quarter, but the company issued a weak forecast.
The San Jose, California-based company posted quarterly net income of $9.5 million, or $0.08 per share, versus a year-ago net loss of $29 million, or $0.26 per share. Excluding items, non-GAAP earnings rose 18 percent to $0.47 per share from $0.40 per share.
Its net revenue for the quarter rose to $510 million from $476 million. However, analysts were expecting earnings of $0.46 per share on revenue of $500.79 million.
The average estimate among 15 Estimize users was for earnings of $0.47 per share and revenue of $501.97 million.
Its gross margin widened to 40.5 percent in the recent quarter, from 38.4 percent in the year-ago quarter.
"Q3 was a record quarter for Verifone," said Paul Galant, Chief Executive Officer of Verifone. "We saw the first half-billion-dollar revenue quarter in the companys history; grew our non-GAAP earnings per share by 18 percent over last year; and outpaced both market expectations and the industry. In addition, we will begin to launch our next generation solutions at the end of this year."
For the fourth quarter, the company expects adjusted earnings of $0.47 to $0.48 per share, on revenue of $510 million to $513 million. Analysts projected earnings of $0.51 per share on revenue of $521.93 million.
For Full fiscal year 2015, Verifone projects adjusted earnings of $1.82 to $1.83 per share, on revenue of $1.997 billion to $2.0 billion. Analysts expected earnings of $1.85 per share on revenue of $2.00 billion.
Verifone shares fell 3.38 percent to $30.00 in the after-hours trading session.
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