VeriFone Slumps on Weak Q3 Guidance
NEW YORK (TheStreet) -- Shares of VeriFone Systems(PAY) fell sharply in late trades after the electronic payments company offered up a soft outlook for the current quarter.
The San Jose, Calif.-based company forecast non-GAAP earnings of 68 to 70 cents a share for its fiscal third quarter ending in July on revenue ranging from $495 million to $500 million. That view has some downside to the current average estimate of analysts polled by Thomson Reuters for a profit of 70 cents a share on revenue of $502.2 million.
For its fiscal year ending in October, VeriFone sees non-GAAP earnings of $2.60 to $2.66 a share on revenue ranging from $1.9 billion to $1.925 billion. Wall Street's current consensus view is for a full-year profit of $2.66 a share on revenue of $1.924 billion.
The guidance overshadowed what was a solid second-quarter performance for the company, which reported earnings of 64 cents per share on $472 million in sales, up 64% year-over-year. That compared to the average analysts' view for earnings of 61 cents a share on revenue of $471.8 million.
CEO Douglas G. Bergeron was positive on the quarter.
"We are very pleased with our performance, particularly the acceleration in organic growth and the increase in Hypercom-brand sales," Bergeron said in the press release. "We remain confident in our outlook for the year. VeriFone is continuing to prove that widespread incumbency combined with market-leading innovation is a winning formula for the payments marketplace."
Shares of VeriFone lost 3.64% during the regular session to close at $45.00. The stock was last quoted at $41.55, down 8%, on after-hours volume of more than 715,000, according to Nasdaq.com.
Interested in more on VeriFone? See TheStreet Ratings' report card for this stock.
--Written by Chris Ciaccia in New York
>Contact by Email.