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 grew slightly. Non-GAAP earnings per share dropped. GAAP earnings per share grew.
Gross margins increased, operating margins shrank, net margins expanded.
VeriFone Systems booked revenue of $429.7 million. The 10 analysts polled by S&P Capital IQ expected sales of $426.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.51. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.48 per share. Non-GAAP EPS of $0.51 for Q1 were 12% lower than the prior-year quarter's $0.58 per share. GAAP EPS were $0.11 for Q1 against -$0.03 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 40.1%, 210 basis points better than the prior-year quarter. Operating margin was 5.1%, 450 basis points worse than the prior-year quarter. Net margin was 2.8%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $440.9 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $1.81 billion. The average EPS estimate is $2.10.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VeriFone Systems is hold, with an average price target of $40.54.
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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. The Motley Fool owns shares of PayPoint. 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.