The 10-second takeaway
For the quarter ended July 31 (Q3), VeriFone Systems missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.
Gross margins expanded, operating margins dropped, net margins contracted.
VeriFone Systems tallied revenue of $489.1 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $498.3 million on the same basis. GAAP reported sales were 54% higher than the prior-year quarter's $317.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.75. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.70 per share. GAAP EPS of $0.34 for Q3 were 21% higher than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.4%, 90 basis points better than the prior-year quarter. Operating margin was 11.5%, 310 basis points worse than the prior-year quarter. Net margin was 7.7%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $520.0 million. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $1.92 billion. The average EPS estimate is $2.66.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VeriFone Systems is outperform, with an average price target of $46.33.
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