VeriFone Systems Inc Fourth Quarter Earnings Sneak Peek

VeriFone Systems Inc (NYSE:PAY) will unveil its latest earnings on Thursday, December 13, 2012. VeriFone designs, markets, and services transaction automation systems that enable secure electronic payments among consumers, merchants, and financial institutions.

VeriFone Systems Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 67 cents per share, a rise of 52.3% 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. It also has not changed during the last month. For the year, analysts are projecting profit of $2.39 per share, a rise of 50.3% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 64 cents per share versus a mean estimate of profit of 61 cents per share.

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A Look Back: In the third quarter, profit rose 43.1% to $37.7 million (34 cents a share) from $26.3 million (28 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 54.3% to $489.1 million from $317 million.

Wall St. Revenue Expectations: On average, analysts predict $495.2 million in revenue this quarter, a rise of 20.6% from the year-ago quarter. Analysts are forecasting total revenue of $1.89 billion for the year, a rise of 45.4% from last year’s revenue of $1.3 billion.

Stock Price Performance: Between December 3, 2012 and December 7, 2012, the stock price rose $2.59 (8.6%), from $29.97 to $32.56. The stock price saw one of its best stretches over the last year between January 30, 2012 and February 9, 2012, when shares rose for nine straight days, increasing 19.1% (+$7.53) over that span. It saw one of its worst periods between October 18, 2012 and October 26, 2012 when shares fell for seven straight days, dropping 7.9% (-$2.54) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 53.1% over the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.86 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: With eight analysts rating the stock a buy, one rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

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

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