VeriFone Systems Second Quarter Earnings Sneak Peek

VeriFone Systems, Inc. (NYSE:PAY) will unveil its latest earnings on Thursday, May 24, 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 analyst estimate is for net income of 53 cents per share, a rise of 39.5% from the company’s actual earnings for the year-ago quarter. 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. Analysts are projecting profit to rise by 46.5% versus last year to $2.33.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported profit of 50 cents per share versus a mean estimate of 46 cents. Two quarters ago, it reported net income of 44 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 61.2% in revenue from the year-earlier quarter to $471.8 million.

Analyst Ratings: six out of 10 analysts surveyed (60%) have a buy rating on VeriFone Systems. This falls under the mean analyst rating of nine competitors, which average 73.1% buy ratings.

A Look Back: In the first quarter, the company swung to a loss of $2.8 million (3 cents a share) from a profit of $32 million (35 cents) a year earlier, but beat analyst expectations. Revenue rose 47.8% to $419.5 million from $283.8 million.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 21.2% in the third quarter of the last fiscal year and 48.8% in the fourth quarter of the last fiscal year before climbing again in the first quarter.

Stock Price Performance: Between April 20, 2012 and May 18, 2012, the stock price dropped $9.57 (-18%), from $53.27 to $43.70. 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 November 14, 2011 and November 25, 2011 when shares fell for nine straight days, dropping 10.1% (-$4.48) over that span.

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

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