Verifone 3Q profit beats but revenue disappoints
SAN JOSE, Calif. (AP) — VeriFone Systems Inc. reported a fiscal third-quarter net income that topped Wall Street's expectations. But shares of the electronic payment company tumbled after hours on disappointing revenue in the latest quarter and a forecast for fourth-quarter revenue that was below expectations.
The company, based in San Jose, Calif., earned $37.7 million, or 34 cents per share, for the quarter that ended July 31. That's up from $26.3 million, or 28 cents per share, in the same quarter last year.
After adjusting for some special items, it earned 75 cents per share in the most recent quarter
Verifone's total revenue increased 54 percent to $489.1 million with gains across its business lines and in all markets except Latin America.
Analysts polled by FactSet were expecting the company to earn an adjusted 70 cents per share on revenue of $498 million.
Verifone CEO Douglas Bergeron said the company saw significant growth in the U.S. during its third quarter based on the adoption of a new system and it remains optimistic about its future growth.
However, the company warned that it expects its Latin American adjusted revenue, which is reported separately, will be lower in its fourth quarter than recent quarters due to "isolated events" but it expects it to rebound in the first quarter.
Verifone also said it expects to earn 75 cents to 77 cents a share on an adjusted basis in its fourth quarter on revenue of $495 million to $500 million. Analysts had forecast earnings of 74 cents per share on revenue of $521 million.
For 2013, it forecast earnings of $3.25 to $3.30 per share on revenue of $2.05 billion to $2.10 billion, both on an adjusted basis as well. Analysts are expecting earnings of $3.23 per share on revenue of $2.15 billion.
Shares of VeriFone fell 13 percent to $30.85 in after-hours trading following the release of its earnings report. Its shares closed regular trading up nearly 2 percent at $35.38.