We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What to Expect When VeriFone (PAY) Reports Q4 Earnings?
Read MoreHide Full Article
VeriFone Systems, Inc. (PAY - Free Report) is set to report results for the fourth quarter of fiscal 2016 on Dec 12. Last quarter, the company posted a positive earnings surprise of 6.45%. In the trailing four quarters, the company has yielded an average positive earnings surprise of 2.16%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
VeriFone’s business has been affected by weakness in emerging markets like Latin America and Turkey. Furthermore, delays in installations of the EMV enabled PoS in the U.S. also weighed on the financials.
VeriFone does hold a prime position in the electronic payment systems and services market. The company is benefiting from the increasing adoption of new payment solutions from Apple (AAPL - Free Report) , Alphabet (GOOGL - Free Report) and Samsung in the mobile payments industry. Recently, VeriFone joined forces with Japanese payment and marketing solutions as a service provider, Vesca, to offer its services in the Asian country. VeriFone also announced a partnership with Alipay. The new collaboration will result in acceptance of Alipay across all big retail outlets in Europe and North America.
The company has also initiated a new restructuring program to focus on streamlining its operations and carve a growth trajectory for the long run. VeriFone expects these restructuring activities to start generating savings from the fourth quarter of 2016 onward, leading to savings of nearly $30 million in 2017.
For the fourth quarter, the company projects non-GAAP revenues of approximately $460 million and non-GAAP earnings per share in the range of 28 to 29 cents. For fiscal 2016, the company estimates non-GAAP revenues of approximately $2 billion (earlier projection was $2.100 billion). Non-GAAP earnings per share are likely to be about $1.64–$1.65 (down from the prior expectation of $1.85).
Earnings Whispers
Our proven model does not conclusively show that VeriFone will beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: VeriFone has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 20 cents.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: VeriFone’s carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Investors can consider the following stock, which, according to our model, has the right combination of elements to beat earnings in its upcoming release:
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
What to Expect When VeriFone (PAY) Reports Q4 Earnings?
VeriFone Systems, Inc. (PAY - Free Report) is set to report results for the fourth quarter of fiscal 2016 on Dec 12. Last quarter, the company posted a positive earnings surprise of 6.45%. In the trailing four quarters, the company has yielded an average positive earnings surprise of 2.16%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
VeriFone’s business has been affected by weakness in emerging markets like Latin America and Turkey. Furthermore, delays in installations of the EMV enabled PoS in the U.S. also weighed on the financials.
VeriFone does hold a prime position in the electronic payment systems and services market. The company is benefiting from the increasing adoption of new payment solutions from Apple (AAPL - Free Report) , Alphabet (GOOGL - Free Report) and Samsung in the mobile payments industry. Recently, VeriFone joined forces with Japanese payment and marketing solutions as a service provider, Vesca, to offer its services in the Asian country. VeriFone also announced a partnership with Alipay. The new collaboration will result in acceptance of Alipay across all big retail outlets in Europe and North America.
The company has also initiated a new restructuring program to focus on streamlining its operations and carve a growth trajectory for the long run. VeriFone expects these restructuring activities to start generating savings from the fourth quarter of 2016 onward, leading to savings of nearly $30 million in 2017.
For the fourth quarter, the company projects non-GAAP revenues of approximately $460 million and non-GAAP earnings per share in the range of 28 to 29 cents. For fiscal 2016, the company estimates non-GAAP revenues of approximately $2 billion (earlier projection was $2.100 billion). Non-GAAP earnings per share are likely to be about $1.64–$1.65 (down from the prior expectation of $1.85).
Earnings Whispers
Our proven model does not conclusively show that VeriFone will beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: VeriFone has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 20 cents.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: VeriFone’s carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
VERIFONE SYSTMS Price and EPS Surprise
VERIFONE SYSTMS Price and EPS Surprise | VERIFONE SYSTMS Quote
Stock to Consider
Investors can consider the following stock, which, according to our model, has the right combination of elements to beat earnings in its upcoming release:
Broadcom Limited (AVGO - Free Report) has an Earnings ESP of +1.73% and a Zacks Rank #2.. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>