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What: Shares of VeriFone Systems (NYSE:PAY) were up as much as 13% today after the company reported strong first-quarter results.
So what: The point-of-sale systems provider said revenue improved 2% to $437 million, ahead of estimates of $429 million, while adjusted earnings per share of $0.31 beat expectations of $0.27. CEO Paul Galant said he was "pleased" with the results, which were better than the guidance the company had provided. During the quarter, the company embarked on several new initiatives, including a mobile ECR solution in Turkey and taxi-top advertising displays in New York City.
Now what: VeriFone's outlook was also promising: The company sees full-year EPS of $1.40, a penny ahead of estimates, and revenue of $1.78 billion-$1.81 billion, in line with expectations of $1.79 billion. Current-quarter revenue guidance also exceeded the analyst consensus. The report was enough to get the company upgraded from sell to hold by Deutsche Bank, while Wedbush lifted its price target to $40 from $35. Both research firms said the company's turnaround seemed to be taking shape.
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