VeriFone Issues Guidance Below Expectations

VeriFone Systems Inc. issued guidance for the current quarter and year mostly below previous expectations as the point-of-sale payments-equipment company reported earnings rose 23% for the three months ended in October.

For the recently started fiscal year that ends in October 2016, the company forecast per-share earnings of $2.15 to $2.17 and revenue of $2.09 billion to $2.11 billion. Analysts polled by Thomson Reuters had expected per-share profit of $2.18 and revenue of $2.1 billion.

For the current quarter, VeriFone forecast per-share earnings of 45 cents and revenue of $500 million. Analysts expected per-share profit of 50 cents and revenue of $503 million.

The San Jose, Calif., company has been benefiting from a shift to chip-embedded credit and debit cards as issuers aim to improve security, as well as technology used in mobile payments through services such as Apple Inc.'s Apple Pay.

For the period ended Oct. 31, VeriFone reported a profit of $38.2 million, or 33 cents a share, up from $31.1 million, or 27 cents a share, a year earlier. Excluding stock-based compensation and other items, per-share earnings rose to 49 cents from 44 cents. Revenue increased 4.8% to $514.1 million. Excluding currency impacts, revenue grew 15%

The company expected per-share profit, excluding one-time items, of 44 cents to 46 cents and revenue of $495 million to $500 million.

Gross margin rose to 42.1% from 40.1%.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

December 14, 2015 16:55 ET (21:55 GMT)

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