VeriFone Plummets After Q3 Results

VeriFone

shares have fallen sharply in Wednesday's after hours trading session after the company released its fiscal third-quarter earnings results after the closing bell. At last check, the stock had fallen around 10 percent and was trading at $31.80. The company reported net income for the quarter of $37.7 million or $0.34 per share, compared to $26.34 million or $0.28 per share, in the year ago period. On an adjusted basis, which is comparable to analysts' consensus, VeriFone reported earnings of $83.2 million or $0.75 per share, versus $46.1 million or $0.49 per share, in the year ago period. This came in ahead of Wall Street analysts' consensus EPS estimates of $0.70. Revenues in the period were $489 million compared to $317 million last year. On an adjusted basis, revenues were $493 million, which was less than Wall Street consensus revenue estimates of $498.37 million. In the fourth quarter, VeriFone guided for EPS between $0.75 and $0.77 on revenues of $495 million to $500 million. This compares to Wall Street consensus estimates of $0.74 on revenues of $520.15 million. For fiscal 2012, VeriFone sees EPS between $2.73 and $2.75 on revenues of $1.893 billion to $1.898 billion. This compares to current analysts' consensus of $2.66 on revenues of $1.92 billion. In fiscal 2013, the company said it expects EPS between $3.25 to $3.30 on revenues of $2.05 billion to $2.10 billion. Analysts currently expect VeriFone to report EPS of $3.23 on revenues of $2.16 billion for fiscal 2013.