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VeriFone (PAY) Q1 Earnings In Line, Revenues Top Estimates
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VeriFone Systems Inc. (PAY - Free Report) reported first-quarter fiscal 2017 adjusted earnings (excluding all one-time items including stock-based compensation) of 12 cents per share that came in line with the Zacks Consensus Estimate. Non GAAP revenues of $456.6 million topped the consensus mark of $449.1 million. On a year-over-year basis, non GAAP revenues fell 11.1%.
System revenues (58.5% of total revenue) decreased 21.4% year over year to $265.4 million. Rest of the revenues came from the Services division, which increased 7.2% year over year to $188.5 million.
Non-GAAP revenues from North America fell 28.5% from the prior-year quarter to $168.6 million while revenues from EMEA declined 1.3% year over year to $168.1 million. However, revenues from Latin America rose 4% to $57 million and Asia Pacific revenues increased 19.4% to $62.9 million.
The company’s non-GAAP gross margin dropped 60 basis points (bps) year over year to 38.9%.
Verifone Systems, Inc. Price, Consensus and EPS Surprise
As of Jan. 31, 2017, VeriFone had approximately $147 million in cash compared with $148.4 million as of Oct 31, 2016. Long-term debt totaled$836.6 million at the end of the quarter.
Cash flow from operations in the quarter was $44.7 million. Meanwhile, free cash flow totaled $25 million in the quarter.
Outlook
VeriFone provided guidance for the second quarter and reiterated its outlook for fiscal 2017.
The company projects non-GAAP revenues of approximately $470 million to $474 million. Non-GAAP earnings per share are expected to be 29 cents for the current quarter.
For fiscal 2017, the company estimates non-GAAP revenues within a range of 1.9 billion to $1.915 billion. Non-GAAP earnings per share are likely to be in the band of$1.35 to $1.39.
Zacks Rank & Share Price Movement
VeriFone carries a Zacks Rank #3 (Hold).
In the past one year, VeriFone has posted a negative return of 20.93% as against the Zacks Financial Transaction Services industry’s gain of 25.60%.
Stocks to Consider
Better-ranked stocks in the wider technology space include Tech Data Corp , Leaf Group Ltd. and PC Connection, Inc. (CNXN - Free Report) . While Tech Datasports a Zacks Rank#1 (Strong Buy), Leaf Group and PC Connection carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, Tech Data, Leaf Group and PC Connectionhave yielded positive average earnings surprises of 8.73%, 27.94% and 1.22%, respectively.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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VeriFone (PAY) Q1 Earnings In Line, Revenues Top Estimates
VeriFone Systems Inc. (PAY - Free Report) reported first-quarter fiscal 2017 adjusted earnings (excluding all one-time items including stock-based compensation) of 12 cents per share that came in line with the Zacks Consensus Estimate. Non GAAP revenues of $456.6 million topped the consensus mark of $449.1 million. On a year-over-year basis, non GAAP revenues fell 11.1%.
System revenues (58.5% of total revenue) decreased 21.4% year over year to $265.4 million. Rest of the revenues came from the Services division, which increased 7.2% year over year to $188.5 million.
Non-GAAP revenues from North America fell 28.5% from the prior-year quarter to $168.6 million while revenues from EMEA declined 1.3% year over year to $168.1 million. However, revenues from Latin America rose 4% to $57 million and Asia Pacific revenues increased 19.4% to $62.9 million.
The company’s non-GAAP gross margin dropped 60 basis points (bps) year over year to 38.9%.
Verifone Systems, Inc. Price, Consensus and EPS Surprise
Verifone Systems, Inc. Price, Consensus and EPS Surprise | Verifone Systems, Inc. Quote
Liquidity
As of Jan. 31, 2017, VeriFone had approximately $147 million in cash compared with $148.4 million as of Oct 31, 2016. Long-term debt totaled$836.6 million at the end of the quarter.
Cash flow from operations in the quarter was $44.7 million. Meanwhile, free cash flow totaled $25 million in the quarter.
Outlook
VeriFone provided guidance for the second quarter and reiterated its outlook for fiscal 2017.
The company projects non-GAAP revenues of approximately $470 million to $474 million. Non-GAAP earnings per share are expected to be 29 cents for the current quarter.
For fiscal 2017, the company estimates non-GAAP revenues within a range of 1.9 billion to $1.915 billion. Non-GAAP earnings per share are likely to be in the band of$1.35 to $1.39.
Zacks Rank & Share Price Movement
VeriFone carries a Zacks Rank #3 (Hold).
In the past one year, VeriFone has posted a negative return of 20.93% as against the Zacks Financial Transaction Services industry’s gain of 25.60%.
Stocks to Consider
Better-ranked stocks in the wider technology space include Tech Data Corp , Leaf Group Ltd. and PC Connection, Inc. (CNXN - Free Report) . While Tech Datasports a Zacks Rank#1 (Strong Buy), Leaf Group and PC Connection carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, Tech Data, Leaf Group and PC Connectionhave yielded positive average earnings surprises of 8.73%, 27.94% and 1.22%, respectively.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>