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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