VeriFone Earnings Flop, Shares Tumble
VeriFone Systems, Inc. (NYSE:PAY) this afternoon reported a sharp decline in quarterly earnings, causing shares to plummet in after-hours trading.
Investing Insights: Microsoft Takes Revenge on Motorola.
In the quarter ended April 30, non-GAAP net revenues were $479 million, compared to $425 million in the previous quarter and $293 million in the year-ago period, a 64 percent year-over-year increase. GAAP net revenues were $472 million in the second quarter, compared to $429 in the previous quarter, and $292 million a year ago.
However, despite revenue gains, earnings fell sharply, down 42 percent on a year-over-year basis. VeriFone reported Thursday that fiscal second-quarter net earnings were $14.5 million, or 13 cents a share, compared to $25.2 million, or 27 cents a share, in the year-ago period. Adjusted earnings for the most recent quarter were 64 cents a share.
Analysts polled by FactSet had expected adjusted earnings of 61 cents on revenue of $471 million, roughly in line with the actual results.
VeriFone expects fiscal 2012 revenue of $1.9 billion to $1.925 billion, and adjusted earnings of $2.60 to $2.66 per share. Analysts currently expect EPS of $2.66 on $1.92 billion in revenue, on the high side of VeriFone’s estimates.
VeriFone shares tumbled 8.67 percent this afternoon to $41.10 as of 4:43 p.m. EDT.
Don’t Miss: Apple Gets Rid of This Headache.