VeriFone Systems, Inc
The 10-second takeaway
For the quarter ended Jan. 31 (Q1), VeriFone Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
VeriFone Systems reported revenue of $419.5 million. The 11 analysts polled by S&P Capital IQ foresaw a top line of $417.5 million on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $283.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.58. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.52 per share on the same basis. GAAP EPS were -$0.03 for Q1 versus $0.35 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.2%, 10 basis points worse than the prior-year quarter. Operating margin was 5.2%, 720 basis points worse than the prior-year quarter. Net margin was -0.7%, 1,200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $467.4 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $1.91 billion. The average EPS estimate is $2.62.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VeriFone Systems is outperform, with an average price target of $48.80.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.