VeriFone Systems Q4 Profit Rises - Update

(RTTNews) - Credit-card swipe machine maker VeriFone Systems Inc. (PAY), Monday reported an increase in profit for the fourth quarter, reflecting higher revenues and strong margins. Earnings for the quarter trumped Wall Street estimates by a penny, as did revenues.

Nevertheless, the company detailed a weak outlook for the first quarter and full year 2016.

San Jose, California-based VeriFone's fourth-quarter profit rises to $38.2 million or $0.33 per share from $31.1 million or $0.27 per share last year.

Excluding one-time items, adjusted earnings for the quarter rose to $0.49 per share from $0.44 per share a year ago. On average, 19 analysts polled by Thomson Reuters expected earnings of $0.48 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the fourth quarter grew 5 percent to $514.1 million from $490.5 million a year ago. Analysts had a consensus revenue estimate of $513.43 million for the quarter.

Revenue in North America surged 54.2 percent, while Europe, Middle East and Africa dropped 4.9 percent. Latin America and Caribbean declined 14.8 percent, and Asia Pacific climbed 4.2 percent.

Gross margin for the quarter rose to 42.1 percent from 40.1 percent last year.

Looking forward to the first quarter, the company expects adjusted earnings of $0.45 per share on revenues of $500 million. Analysts currently expect earnings of $0.50 per share on revenues of $503.87 million for the quarter.

For the full year 2016, the company expects adjusted earnings of $2.15 to $2.17 per share and revenues of $2.09 billion to $2.11 billion. Analysts currently expect earnings of $2.19 per share on revenues of $2.11 billion for 2016.

PAY closed Monday's trading at $26.43, on the NYSE. The stock further dropped $0.43 or 1.63% in the after-hours trade.