Bloomberg News

VeriFone Rallies After Ingenico’s Comments: San Francisco Mover

April 23, 2013

VeriFone Systems Inc. (PAY:US) rose the most in more than six weeks after competitor Ingenico (ING) SA’s comments suggested that the maker of credit-card terminals is taking back market share.

VeriFone shares (PAY:US) gained 7.6 percent to $20.07 at 3:02 p.m. in New York after climbing as much as 13 percent for the biggest intraday advance since March 6. The San Jose, California-based company’s stock had fallen 37 percent this year through yesterday, as the Standard & Poor’s 500 Index rose 9.6 percent.

Ingenico executives said yesterday on an earnings conference call that business in the early part of the first quarter was “ extremely high” and in the rest was “much more in line” with its full-year outlook. Investors took that to mean that later in the quarter, VeriFone began to regain market share, Gil Luria, a Wedbush Securities Inc. analyst in Los Angeles, said in an interview. Luria rates VeriFone neutral.

The comments on the Neuilly-sur-Seine, France-based company’s call may have eased concerns that have dogged VeriFone since March, when Chief Executive Officer Douglas Bergeron was dismissed. His departure followed VeriFone’s forecast for fiscal second-quarter profit, which trailed analysts’ estimates amid diminished demand for credit-card terminals.

To contact the reporter on this story: Olga Kharif in Portland, Oregon, at okharif@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


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Companies Mentioned

  • PAY
    (VeriFone Systems Inc)
    • $36.68 USD
    • -0.20
    • -0.55%
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