VeriFone Systems Inc. swung to a profit as the
electronic-payments-equipment company benefited from strong revenue
growth in North America during the quarter ended in April.
For the year ending in October, VeriFone raised its per-share
earnings estimate to $1.81 to $1.84 with revenue of $1.995 billion
to $2 billion, from its previous estimate for per-share profit of
$1.78 to $1.82 and revenue of $1.99 billion to $2 billion.
For the current quarter, the company forecast per-share earnings
of 44 cents to 46 cents and revenue of $495 million to $500
million. Analysts polled by Thomson Reuters expected per-share
profit of 46 cents and revenue of $501 million.
San Jose, Calif.-based VeriFone has been realigning its business
to focus on mobile and digital technology while aiming to expand
abroad.
The company has been benefiting from a shift to chip-embedded
credit and debit cards as issuers aim to improve security, as well
as technology used in mobile payments through services like Apple
Pay.
Chief Executive Paul Galant said the company "achieved record
North America results while also gaining share across several key
European markets."
In the latest quarter, net revenue in its North America business
surged 54%. Excluding currency effects, net revenue in the Europe,
Middle East, Africa segment rose 7.6%.
For the period ended April 30, VeriFone reported a profit of
$17.6 million, or 15 cents a share, compared with a year-earlier
loss of $23.9 million, or 22 cents a share. Excluding
acquisition-related effects, stock-based compensation and other
items, per-share earnings rose to 44 cents from 37 cents. Revenue,
excluding some fair-value adjustments, increased 5% to $490.3
million. Excluding currency impacts, revenue climbed 14%.
The company expected per-share profit of 41 cents to 42 cents
and revenue of $485 million to $489 million.
Write to Tess Stynes at tess.stynes@wsj.com
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