VeriFone Beats Estimates, Raises Guidance

VeriFone Systems Inc. (NYSE: PAY) reported fiscal first quarter 2016 results after markets closed Thursday. The electronic payments company reported adjusted diluted earnings per share (EPS) of $0.48 on $514 million in revenues. In the same period a year ago, the company reported adjusted EPS of $0.44 on revenue of $486.9 million. Third-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.46 and $501.22 million in revenue.

On a GAAP basis, the company posted first-quarter EPS of $0.21 which excludes stock-based compensation and restructuring charges among other items. VeriFone posted GAAP EPS of $0.12 in the same quarter last year.

The company’s second-quarter guidance calls for EPS in a range of $0.51 to $0.52 and revenues of $530 million. The analysts’ consensus calls for EPS of $0.51 on revenues of $515.25 million.

For the full 2015 fiscal year the company raised its EPS estimate from a prior range of $2.15 to $2.17 to a new range of $2.21 to $2.24. VeriFone also raised net revenue guidance from $2.09 to $2.11 billion to a new range of $2.15 to $2.17 billion. Consensus estimates call for EPS of $2.16 on revenues of $2.1 billion.

The company’s CEO, Paul Calant, said:

The Verifone team outperformed in Q1. We exceeded our guidance for revenue and earnings per share, and continue to deliver consistent organic growth. The worldwide market for electronic payments is growing. At the same time, we are investing in innovation and executing on delivering our next generation devices and services. Verifone is well positioned for sustained, balanced growth across our businesses throughout the remainder of 2016 and beyond.

The company’s shares traded up about 0.5% in after-hours trading Thursday at $26.70. The current 52-week range is $20.14 to $39.25. Thomson Reuters had a consensus analyst price target of $35.61 before today’s results were announced. The highest price target is $42.00.