Verifone misses on quarterly sales expectations, shares fall more than 12 percent

Verifone, the electronic payment system makers, were down more than 12 percent on stocks late Wednesday due to less than stellar quarterly report. The company released the performance report on its third fiscal quarter on Wednesday that missed on some fronts.

The though both revenues and profit per share was higher than the year-earlier quarter, the former missed the expectations from analysts. Verifone reported earnings of $75 cents per share that easily beat the estimated 70 cents a pop for Q3. However, the sales were down at $493 Million from the assessed $498 Million. Both EPS and sales were 53 and 56 percent higher than the year-ago quarter.

The sales have been booming in the past few months due majorily to the increasing adoption of electronic payment systems from large companies. Its latest Europay, MasterCard and Visa-based (EMV) systems have started to sell in the third quarter. This has led to high revenues but the company missed on the expected sales by analysts.

“Despite continued volatility around exchange rates, our business remains vibrant in all geographies,” VeriFone CEO Douglas Bergeron said in a statement. “In the U.S., growth accelerated as we saw the beginnings of the adoption of EMV-based systems and the first significant payments services deals in the quarter. We are excited about our prospects for 2013 and beyond.”

In its guidance report for the running quarter and next year, the company stated an expectation 75 to 77 cents a share ex items, on sales of $495 Million to $500 Million. For 2013, Verifone expects to earn $3.25 to $3.30 a share on sales of $2.05 Billion to $2.1 Billion.

On the other hand, a general consensus at Wall Street expects earnings per share of $3.23 on sales of $2.16 Billion.

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Posted by Usman Khalid on Sep 8 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.