VeriFone Profit Tops Estimates, Q4 Outlook Weak; Stock Down 6%

(RTTNews) - Credit- and debit-card swipe machine maker VeriFone Systems Inc (PAY) on Thursday reported third-quarter net earnings of $9.5 million or $0.08 per share compared with a loss of $29 million or $0.26 per share last year.

Excluding items, adjusted earnings for the quarter were $0.47 per share compared with earnings of $0.40 per share a year ago.

Revenues for the quarter were up 7% at $510 million compared with $476 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.46 per share on revenues of $500.8 million for the quarter. Analysts' estimates typically exclude special items.

Gross margin improved to 40.5% from 38.4% a year ago.

For the fourth quarter, the company expects adjusted earnings of $0.47 to $0.48 per share on adjusted revenues of $510 million to $513 million. Analysts expect earnings of $0.51 per share on revenues of $521.9 million.

For the full year 2015, the company now expects adjusted earnings of $1.82 to $1.83 per share on adjusted revenues of $1.997 billion to $2.0 billion. Earlier it expected earnings of $1.81 to $1.84 per share on revenues of $1.995 billion to $2.0 billion.

Analysts expect earnings of $1.85 per share on revenues of $2.0 billion for 2015.