Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of VeriFone Systems Inc. Popped

By Jeremy Bowman – Mar 12, 2014 at 4:15PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of VeriFone Systems (PAY) were up as much as 13% today after the company reported strong first-quarter results. 

So what: The point-of-sale systems provider said revenue improved 2% to $437 million, ahead of estimates of $429 million, while adjusted earnings per share of $0.31 beat expectations of $0.27. CEO Paul Galant said he was "pleased" with the results, which were better than the guidance the company had provided. During the quarter, the company embarked on several new initiatives, including a mobile ECR solution in Turkey and taxi-top advertising displays in New York City. 

Now what: VeriFone's outlook was also promising: The company sees full-year EPS of $1.40, a penny ahead of estimates, and revenue of $1.78 billion-$1.81 billion, in line with expectations of $1.79 billion. Current-quarter revenue guidance also exceeded the analyst consensus. The report was enough to get the company upgraded from sell to hold by Deutsche Bank, while Wedbush lifted its price target to $40 from $35. Both research firms said the company's turnaround seemed to be taking shape.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.