VeriFone Systems Goes Negative

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VeriFone Systems (NYS: PAY) reported earnings on June 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q2), VeriFone Systems missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped to a loss.


Margins dropped across the board.

Revenue details
VeriFone Systems reported revenue of $430.0 million. The 16 analysts polled by S&P Capital IQ wanted to see revenue of $441.1 million on the same basis. GAAP reported sales were 9.7% lower than the prior-year quarter's $472.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.42. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. Non-GAAP EPS of $0.42 for Q2 were 34% lower than the prior-year quarter's $0.64 per share. GAAP EPS were -$0.54 for Q2 versus $0.03 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.2%, 500 basis points worse than the prior-year quarter. Operating margin was -0.1%, much worse than the prior-year quarter. Net margin was -13.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $457.2 million. On the bottom line, the average EPS estimate is $0.50.

Next year's average estimate for revenue is $1.80 billion. The average EPS estimate is $1.98.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VeriFone Systems is hold, with an average price target of $23.00.

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The article VeriFone Systems Goes Negative originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of PayPoint. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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