VeriFone Systems Inc. Fourth Quarter Earnings Sneak Peek

VeriFone Systems, Inc. (NYSE:PAY) will unveil its latest earnings on Wednesday, December 14, 2011. 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 44 cents per share, a rise of 33.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 43 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. For the year, analysts are projecting profit of $1.62 per share, a rise of 54.3% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the third quarter, the company reported net income of 40 cents per share versus a mean estimate of profit of 40 cents per share. In the second quarter, the company beat estimates by 0 cents.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Wall St. Revenue Expectations: On average, analysts predict $406.4 million in revenue this quarter, a rise of 47.3% from the year ago quarter. Analysts are forecasting total revenue of $1.31 billion for the year, a rise of 31% from last year’s revenue of $1 billion.

Analyst Ratings: six out of 10 analysts surveyed (60%) have a buy rating on VeriFone Systems.. This is below the mean analyst rating of nine competitors, which average 72% buy ratings.

A Look Back: In the third quarter, profit rose 42.1% to $26.3 million (28 cents a share) from $18.5 million (21 cents a share) the year earlier, meeting analyst expectations. Revenue rose 21.2% to $317 million from $261.5 million.

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 24.1%, with the biggest boost coming in the first quarter when revenue rose 27% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 24.6% in the second quarter and more than threefold in the first quarter.

Competitors to Watch: Hypercom Corporation (NYSE:HYC), NCR Corporation (NYSE:NCR), Radiant Systems, Inc. (NASDAQ:RADS), MICROS Systems, Inc. (NASDAQ:MCRS), Global Payment Tech., Inc. (GPTX), USA Technologies, Inc. (NASDAQ:USAT), PAR Technology Corporation (NYSE:PAR), Pitney Bowes Inc. (NYSE:PBI), and ZUK Elzab SA (ELZ).

Stock Price Performance: During September 14, 2011 to December 8, 2011, the stock price had risen $4.71 (12.8%) from $36.91 to $41.62. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 12, 2011 when shares rose for eight-straight days, rising 22.3% (+$7.21) over that span. It saw one of its worst periods between November 14, 2011 and November 25, 2011 when shares fell for nine-straight days, falling 10.1% (-$4.48) over that span. Shares are up $3.06 (+7.9%) year to date.

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

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.