VeriFone Systems, Inc. (PAY - Free Report) is set to report results for the first quarter of fiscal 2017 on Mar 9. Last quarter, the company posted a positive earnings surprise of 5.00%. For the trailing four quarters, the company has an average positive earnings surprise of 0.29%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
VeriFone holds 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.
The company’s strong product portfolio positions it well to gain from the booming payments market. VeriFone Engage and Carbon iPOS offerings are expected to fuel its growth. Also, accretive acquisitions have played a pivotal role in expanding its business.
The company has initiated a new restructuring program to focus on streamlining its operations and carve a growth trajectory for the long run. VeriFone started to generate savings from its restructuring activities in the fourth quarter of 2016 and expects it to continue through 2017.
However, VeriFone’s business has been affected by weakness in the emerging markets. Furthermore, management has given a cautious outlook for fiscal 2017 on account of the shift in EMV deadline and continued forex volatility.
For the first quarter, the company projects non-GAAP revenues of approximately $450 million and non-GAAP earnings of 20 centsper share.
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 12 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: VeriFone carries a Zacks Rank #3 which when combined with 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
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:
Envestnet, Inc. (ENV - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
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VeriFone Systems, Inc. (PAY - Free Report) is set to report results for the first quarter of fiscal 2017 on Mar 9. Last quarter, the company posted a positive earnings surprise of 5.00%. For the trailing four quarters, the company has an average positive earnings surprise of 0.29%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
VeriFone holds 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.
The company’s strong product portfolio positions it well to gain from the booming payments market. VeriFone Engage and Carbon iPOS offerings are expected to fuel its growth. Also, accretive acquisitions have played a pivotal role in expanding its business.
The company has initiated a new restructuring program to focus on streamlining its operations and carve a growth trajectory for the long run. VeriFone started to generate savings from its restructuring activities in the fourth quarter of 2016 and expects it to continue through 2017.
However, VeriFone’s business has been affected by weakness in the emerging markets. Furthermore, management has given a cautious outlook for fiscal 2017 on account of the shift in EMV deadline and continued forex volatility.
For the first quarter, the company projects non-GAAP revenues of approximately $450 million and non-GAAP earnings of 20 centsper share.
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 12 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: VeriFone carries a Zacks Rank #3 which when combined with 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
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:
Envestnet, Inc. (ENV - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
8 Stocks with Huge Profit Potential Just released:
Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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