Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Verifone Systems Inc.
So what: Non-GAAP EPS of $0.43 beat the consensus estimate of $0.39 as revenue grew 27% from the year-ago quarter. GAAP gross profit grew an impressive 36% while GAAP operating profit grew a stunning 82% year-over-year.
Now what: The company is benefiting from rapid growing in mobile payments. Guidance was raised to non-GAAP EPS of $0.42 to $0.43 for the current quarter and $1.75 to $1.80 for the fiscal year, compared to consensus expectations of $0.40 and $1.64, respectively. The forward P/E ratio is steep at 27 times non-GAAP EPS and roughly 34 times GAAP EPS, but seems more reasonable considering guidance calls for non-GAAP EPS growth of 33% to 36% in fiscal 2011.
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