VeriFone Systems Earnings: Here’s Why the Stock is Falling Now
VeriFone Systems, Inc (NYSE:PAY) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 11.39%.
VeriFone Systems, Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 34.38% to $0.42 in the quarter versus EPS of $0.64 in the year-earlier quarter.
Revenue: Decreased 8.9% to $430 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: VeriFone Systems, Inc reported adjusted EPS income of $0.42 per share. By that measure, the company missed the mean analyst estimate of $0.47. It missed the average revenue estimate of $440.29 million.
Quoting Management: Richard McGinn, Interim Chief Executive Officer, said, “We are keenly aware of the significant short-term challenges impacting our fiscal year 2013 financial results. To regain our momentum, we are addressing the critical issues head-on. We have empowered a new senior leadership team. We are substantially increasing our R&D investment to best serve our customers and regain competitiveness in markets where we have product gaps. And, we have increased our focus on cash management, as evidenced by our generation of $79 million of operating cash flow in the second quarter.”
Key Stats (on next page)…
Revenue increased 0.29% from $428.75 million in the previous quarter. EPS decreased 17.65% from $0.51 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.51 to a profit $0.50. For the current year, the average estimate has moved down from a profit of $2.04 to a profit of $2.02 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)