VeriFone Beats Expectations but Outlook Misses Estimates

VeriFone Systems Inc.'s adjusted results beat expectations in the latest quarter though the payments-technology company's guidance missed analysts' views.

Verifone's shares rose 2.8% to $16.90 in recent after-hours trading.

For the fiscal year ending October 2017, the company forecast adjusted per-share earnings of $1.35 to $1.39 and adjusted revenue of $1.9 billion to $1.915 billion. Analysts polled by Thomson Reuters expected adjusted per-share profit of $1.59 and adjusted revenue of $1.93 billion.

For the current quarter, VeriFone projected adjusted per-share earnings of 20 cents and adjusted revenue of roughly $450 million. Analysts expected adjusted per-share profit of 36 cents and adjusted revenue of $471.3 million.

VeriFone has been working to transform itself into a payment- and commerce-services company from a vendor of payment terminals.

The company's performance has been hit in recent quarters by a slower rollout of new point-of-sale devices with so-called EMV technology, which accept credit cards with embedded computer chips.

For the period ended Oct. 31, VeriFone reported a loss of $4.5 million, or 4 cents a share, compared with a year-earlier profit of $38.2 million, or 33 cents a share. Excluding items, adjusted per-share earnings fell to 30 cents from 49 cents. Revenue decreased 9.7% to $464 million. Excluding certain items, adjusted revenue was $468 million.

The company expected adjusted per-share profit of 28 cents to 29 cents and adjusted revenue of $460 million.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

December 12, 2016 18:05 ET (23:05 GMT)

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