VeriFone Systems Earnings: Profit Goes South

VeriFone Systems Inc. (NYSE:PAY) reported its results for the fourth quarter. VeriFone designs, markets, and services transaction automation systems that enable secure electronic payments among consumers, merchants, and financial institutions.

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VeriFone Systems Inc. Earnings Cheat Sheet

Results: Net income for VeriFone Systems Inc. fell to $27 million (24 cents per share) vs. $198.8 million ($1.84 per share) a year earlier. This is a decline of 86.4% from the year-earlier quarter.

Revenue: Rose 18.2% to $485.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: VeriFone Systems Inc. reported adjusted net income of 76 cents per share. By that measure, the company beat the mean estimate of 67 cents per share. It beat the average revenue estimate of $471.8 million.

Quoting Management: “We are very pleased with our earnings leverage in 2012, with non-GAAP earnings per share growing over 40% for the third consecutive year,” said Douglas G. Bergeron, Chief Executive Officer. “Our investments in the next generation of payment services and systems are paying off in North America, which grew organically by 22% in Q4. Our plans for 2013 are to replicate these investments in our international markets in order to enjoy accelerated international growth later in 2013 and into 2014.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 46.1%, with the biggest boost coming in the second quarter when revenue rose 61.4% from the year earlier quarter.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the third quarter, by one cent in the second quarter, and by 4 cents in the first quarter.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 64 cents a share. The average estimate hasn’t changed from $2.39 per share for the fiscal year.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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