Why Shares of VeriFone Systems Inc. Popped

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: 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.

Stocks that don't need a turnaround
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 18, 2014, at 12:33 PM, CraigWPowell wrote:

    On Wednesday March 12th 2014, VeriFone Systems (PAY) jumped as much as 13% after reporting strong first quarter results as the algorithm predicted. CEO Paul Galant said he was "pleased" with the results.

    PAY is up also today in accordance with the forecast: //iknowfirst/Quick_Wins_By_The_Algorithm_NBG_PAY

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2873794, ~/Articles/ArticleHandler.aspx, 8/28/2015 3:46:24 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Jeremy Bowman

Fool since 2011. I write about consumer goods, the big picture, and whatever else piques my interest. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.

Today's Market

updated Moments ago Sponsored by:
DOW 16,585.48 -69.29 -0.42%
S&P 500 1,979.01 -8.65 -0.44%
NASD 4,811.49 -1.22 -0.03%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 3:30 PM
PAY $31.64 Up +0.28 +0.89%
VeriFone Holdings,… CAPS Rating: ***