The 10-second takeaway
For the quarter ended April 30 (Q2), VeriFone Systems missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
VeriFone Systems reported revenue of $430.0 million. The 16 analysts polled by S&P Capital IQ wanted to see revenue of $441.1 million on the same basis. GAAP reported sales were 9.7% lower than the prior-year quarter's $472.0 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 $0.42. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. Non-GAAP EPS of $0.42 for Q2 were 34% lower than the prior-year quarter's $0.64 per share. GAAP EPS were -$0.54 for Q2 versus $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 36.2%, 500 basis points worse than the prior-year quarter. Operating margin was -0.1%, much worse than the prior-year quarter. Net margin was -13.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $457.2 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $1.80 billion. The average EPS estimate is $1.98.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VeriFone Systems is hold, with an average price target of $23.00.
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