The 10-second takeaway
For the quarter ended Oct. 31 (Q4), VeriFone Systems missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins grew, net margins contracted.
VeriFone Systems recorded revenue of $485.4 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $495.2 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $410.7 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 $0.76. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.24 for Q4 were 87% lower than the prior-year quarter's $1.83 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 41.1%, 960 basis points better than the prior-year quarter. Operating margin was 10.6%, 510 basis points better than the prior-year quarter. Net margin was 5.6%, 4,280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $496.0 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $2.09 billion. The average EPS estimate is $3.28.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VeriFone Systems is outperform, with an average price target of $44.75.
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