VeriFone Holdings, Inc. Third Quarter Earnings Sneak Peek

VeriFone Holdings, Inc. (NYSE:PAY) will unveil its latest earnings on Tuesday, September 6, 2011. The Company designs, markets, and services transaction automation systems that enable secure electronic payments among consumers, merchants, and financial institutions.

VeriFone Holdings, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 40 cents per share, a rise of 42.9% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting profit of $1.55 per share, a rise of 47.6% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the second quarter, the company reported net income of 38 cents per share versus a mean estimate of profit of 38 cents per share. In the first quarter, the company beat estimates by 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $299.5 million in revenue this quarter, a rise of 14.5% from the year ago quarter. Analysts are forecasting total revenue of $1.27 billion for the year, a rise of 27% from last year’s revenue of $1 billion.

Analyst Ratings: five out of eight analysts surveyed (62.5%) have a buy rating on VeriFone Holdings.. This is below the mean analyst rating of nine competitors, which average 75% buy ratings.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 24.7%, with the biggest boost coming in the first quarter when revenue rose 27% from the year earlier quarter.

The company increased its gross margin by 4.9 percentage points in the in the second quarter. Revenue rose 21.5% while cost of sales rose 12.1% to $169.9 million from a year earlier.

Competitors to Watch: Hypercom Corporation (NYSE:HYC), NCR Corporation (NYSE:NCR), Radiant Systems, Inc. (NASDAQ:RADS), MICROS Systems, Inc. (NASDAQ:MCRS), USA Technologies, Inc. (NASDAQ:USAT), PAR Technology Corporation (NYSE:PAR), Pitney Bowes Inc. (NYSE:PBI), Diebold (NYSE:DBD), Coinstar (NASDAQ:CSTR), DELL (NASDAQ:DELL), Hewlett-Packard (NYSE:HPQ), IBM (NYSE:IBM).

Stock Price Performance: During July 6, 2011 to August 31, 2011, the stock price had fallen $10.12 (-22.3%) from $45.34 to $35.22. The stock price saw one of its best stretches over the last year between January 31, 2011 and February 7, 2011 when shares rose for six-straight days, rising 10.7% (+$4.27) over that span. It saw one of its worst periods between August 15, 2011 and August 22, 2011 when shares fell for six-straight days, falling 16.4% (-$6.09) over that span. Shares are down $3.34 (-8.7%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.