VeriFone Shares Plunge as Revenue Misses Estimates

Wednesday, 05 Sep 2012 05:16 PM

 

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Shares of VeriFone Systems Inc. tumbled in late trading after the maker of credit-card terminals reported third-quarter sales that fell short of analysts’s estimates.

The shares of San Jose, California-based VeriFone dropped as much as 17 percent to $29.50 after closing at $35.38 in New York. The stock had declined less than 1 percent this year.

Revenue in the quarter rose 54 percent to $489.1 million from a year earlier, VeriFone said Wednesday in a statement. That missed the average $498.7 million estimate, according to data compiled by Bloomberg.

“The revenue was a little low in the quarter, and guidance for the next quarter and the next year was lower,” said Gil Luria, an analyst at Wedbush Securities Inc., in an interview Wednesday.

Net income income increased to $37.7 million, or 34 cents a share, from $26.3 million, or 28 cents, a year earlier. Profit excluding some items was 75 cents a share, topping the average 70 cent estimate.

VeriFone forecast fourth-quarter earnings excluding certain items of 75 cents to 77 cents a share. For the fiscal year ending in October 2013, profit excluding some items will be $3.25 a share to $3.30 a share. Sales in fiscal 2013 will be $2.05 billion to $2.10 billion, less than the average $2.16 billion estimate.

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