Since the early 1980s, VeriFone
In the second quarter, revenues increased 17% to $147.6 million. Adjusted earnings, which exclude non-cash items, were $0.28 per share, up from last year's $0.20 per share. On the news, Verifone's stock surged upward by 20% on Friday.
VeriFone has a comprehensive offering of point-of-sale solutions, such as readers, touchscreens, printers, and even web servers. The systems integrate with complex payment networks -- including Visa, MasterCard
In fact, there are several major favorable trends for VeriFone. First, in North America, companies are upgrading their payment systems. This usually means using Web-based approaches and wireless approaches.
Next, there are growth opportunities in emerging markets such as China, Eastern Europe, and India. For example, to aggressively push into these markets, VeriFone is purchasingLipmanElectronic Engineering
True, VeriFone has fierce competition from players such as IBM
Moreover, it continues to innovate or buy innovators. it recently purchased the payment systems business of TrintechGroup
In light of the all these positives, it should be no surprise that VeriFone upped its guidance. Full-year adjusted earnings is forecasted at $1.07 to $1.08 in 2006 and $1.40 to $1.42 in 2007.
But given the overall growth of its target markets, the company has the opportunity to grow for the long term. And given its track record, its team seems up to the task.
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- VeriFone: Doubling Down on Emerging Markets
- Buy or Sell MasterCard?
- Are Tech Buyouts the Next Big Thing?
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Fool contributor Tom Taulli does not own shares mentioned in this article.