VeriFone Systems Earnings: Here’s Why the Stock is Rising Now
VeriFone Systems, Inc (NYSE:PAY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.56%.
VeriFone Systems, Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 68% to $0.24 in the quarter versus EPS of $0.75 in the year-earlier quarter.
Revenue: Decreased 14.53% to $418 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: VeriFone Systems, Inc reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.2. It beat the average revenue estimate of $400.83 million.
Quoting Management: “Our revenues and earnings exceeded our guidance, cash flow exceeded our expectation, and we paid down $160 million of debt, bolstering our financial position,” said Richard McGinn, Interim Chief Executive Officer. “We are also pleased by the acquisition of ENZ, which extends to New Zealand our payment-as-a-service business model that is thriving in the Nordics under Point and launching in other geographies such as the U.S. In fact, Q3 Services revenues were up 17% from a year ago. And, with our increased investments in R&D and infrastructure, we are making good progress in bringing to market the advanced products to meet customer demand.”
Key Stats (on next page)…