Earnings Preview: VeriFone - Analyst Blog
31 Maggio 2011 - 3:22PM
Zacks
VeriFone Systems Inc. (PAY) is expected to
report its second quarter fiscal 2011 earnings after the market
closes on Thursday, June 2, 2011.
VeriFone Systems had outperformed the Zacks Consensus Estimate
over the trailing four quarters. The average earnings surprise was
a positive 8.21%, implying that the company has outdone the Zacks
Consensus Estimate by that magnitude over the last four
quarters.
First-Quarter Highlights
VeriFone Systems in the first quarter 2011 posted a net income
(excluding one-time charges) of 35 cents per share, easily outpaced
the Zacks Consensus Estimate of 33 cents.
The company reported revenues of $284 million, up 27% year over
year, beating the Zacks Consensus Estimate of $268 million. There
was a growth in revenues across all segments. Further, Latin
America and Europe were the growth engines reporting year-over-year
growth rates of 23% and 14%, respectively.
Agreement of Estimate Revisions
In the absence of any significant news, none of the 5 analysts
providing estimates changed their earnings estimates in the last 30
days.
Magnitude of Estimate Revisions
In the last thirty days, the Zacks Consensus Estimate for 2011
was stable at $1.57 per share, representing a year-over year growth
of 48%.
Estimate for the second quarter was also static at 38 cents per
share, reflecting a growth a year-over year growth of 58.3%.
Our Take
We believe that the company is expanding its footprint in
international markets. Recently, VeriFone entered into an agreement
to acquire South Africa-based Destiny Electronic Commerce (Pty)
Ltd. in an effort to expand in developing economy recently.
Last year, the company announced that it would acquire its rival
Hypercom Corporation (HYC) for approximately $7.32
per share or $485 million. The acquisition is expected to close in
the second half of 2011.
With resurgence in the economy, VeriFone Systems is well
positioned to deliver accelerated revenues. Moreover, demand for
newer services will also fuel VeriFone’s growth.
For fiscal 2011, VeriFone projected earnings per share
(excluding one-time charges) in the range of $1.75 - $1.80.
Revenues are anticipated between $1.150 billion and $1.160
billion.
For the second quarter of fiscal 2011, the company expects
earnings per share to range from 42 cents - 43 cents. Revenues are
projected between $280 million and $284 million.
Currently, we are maintaining our Outperform recommendation on
the stock ahead of the second quarter results.
HYPERCOM CORP (HYC): Free Stock Analysis Report
VERIFONE HLDGS (PAY): Free Stock Analysis Report
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