VeriFone Systems Q1 Profit Rises - Update

(RTTNews) - Credit-card swipe machine maker VeriFone Systems Inc. (PAY), Thursday reported a surge in profit for the first quarter, reflecting higher revenues and strong margins. Earnings for the quarter trumped Wall Street estimates, as did revenues. The company lifted its outlook for the full year 2016.

San Jose, California-based VeriFone's first-quarter profit rose to $23.5 million or $0.21 per share from $13.8 million or $0.12 per share last year.

Excluding one-time items, adjusted earnings for the quarter rose to $0.48 per share from $0.44 per share a year ago. On average, 19 analysts polled by Thomson Reuters expected earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the first quarter grew 5.6 percent to $513.5 million from $486.2 million a year ago. Analysts had a consensus revenue estimate of $501.22 million for the quarter.

Revenue in North America surged 47.0 percent, while Europe, Middle East and Africa dropped 5.4 percent. Latin America declined 22.9 percent, and Asia Pacific plunged 29.5 percent.

Gross margin for the quarter rose to 41.9 percent from 41.0 percent last year.

Looking forward to the second quarter, the company expects adjusted earnings of $0.51 to $0.52 per share on revenues of about $530 million. Analysts currently estimate earnings of $0.51 per share on revenues of $515.25 million.

For the full year 2016, the company now expects adjusted earnings of $2.21 to $2.24 per share and revenues of $2.15 billion to $2.17 billion. Analysts currently expect earnings of $2.16 per share on revenues of $2.10 billion for 2016.

The company earlier expected adjusted earnings of $2.15 to $2.17 per share and revenues of $2.09 billion to $2.11 billion for 2016.

PAY closed Thursday's trading at $26.56, up $0.20 or 0.76%, on the NYSE. The stock further rose $0.23 or 0.87% in the after-hours trade.