VeriFone Holdings Second Quarter Earnings Sneak Peek

VeriFone Holdings, Inc. (NYSE:PAY) will unveil its latest earnings on Thursday, June 2, 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 analyst is estimating net income of 38 cents per share, a rise of 58.3% from the same quarter a year ago. Estimates range from profit of 37 cents per share to net income of 38 cents per share. Over the past three months, the consensus estimate has moved up from 34 cents. The consensus estimate is unchanged from a month ago. For the year, analysts are projecting profit of $1.57 per share, a rise of 49.5% from last year.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting net income of 35 cents per share, and the previous quarter, it had profit of 33 cents.

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Wall St. Revenue Expectations: On average, analysts predict $285.4 million in revenue this quarter, a rise of 18.5% from the year ago quarter. Analysts are forecasting total revenue of $1.17 billion for the year, from last year’s revenue of $1 billion.

Analyst Ratings: Of the analysts surveyed, there were no sell ratings, with four buys.

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past four quarters. Over that span, the company has averaged growth of 24.2%, with the biggest boost coming in the most recent quarter when revenue rose 27% from the year earlier quarter.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of more than fourfold. The quarter with the biggest boost was the fourth quarter of the last fiscal year, which saw a 1241% surge.

The company raised its gross margin by 2.6 percentage points in the last quarter. Revenue rose 27% while cost of sales rose 21.8% to $172.3 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).

Recent Price Movement: From two months ago, the stock price has fallen $8.42 (-15%) from $54.95 on March 31, 2011 to $46.53.

(Sources: YahooFinance and Xignite Financials)

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