VeriFone Systems Inc. (NYSE:PAY) will release its fiscal second quarter 2014 financial results after the market closes on June 5, 2014. The management of VeriFone will host a webcast to review the financial results that day at 1:30 pm (PT).
Wall Street anticipates that the Business Equipment maker will earn $0.33 per share for the quarter, which is $0.09 less than last year's profit of $0.42 per share. iStock expects PAY to hit Wall Street's consensus number, the iEstimate is $0.33, too.
Sales, unlike earnings, are expected to rise a modest 3.2% year-over-year (YoY). VeriFone's consensus revenue estimate for Q2 is $443.42 million, which is more than last year's $429.75 million.
[Related -Target Corporation (TGT) Q1 Earnings Preview: Bad, But Not That Bad?]
VeriFone is engaged in the secure electronic payment solutions. It provides solutions, and services for the financial, retail, hospitality, petroleum, transportation, government, and healthcare vertical markets. Its system solutions consist of point of sale (POS) electronic payment devices that run its and third-party operating systems, security and encryption software, and certified payment software, as well as other third-party value-added applications. Its system solutions are able to process a range of payment types.
This author's personal observation could mean there is good news in store for Thursday's earnings announcement. On a recent trip to the local Target Corporation (NYSE:TGT), there were all new VeriFone POS devices. You know where swipe your credit or debit card. The cashier said they were installed as a response to the data breach some time ago.
[Related -VeriFone Systems Inc (PAY) Q1 Earnings Preview: Pop and Drop?]
Now, the neighborhood target is supposedly one of the largest in the country, and I haven't visited any other; so, the switch might be a beta project or nationwide. In any case, it is business for PAY.
VeriFone's reported EPS topped Wall Street's consensus view 10 of the last 16 quarters, hit the street's outlook on the nose four times, and fell short twice. On average, the typical bullish surprise was 10.52% more than forecasted. Meanwhile, the two bearish surprises were -1.49% and -7.69%.
Earnings-driven, price sensitivity tracked the side of the surprise, for the most part. Investors bought shares of PAY in the days surrounding 10 of the last 16 quarterly checkups while selling six times.
For the 10 green reactions, the stock gained from 1.8% to 17.8% with and average jump of a respectable 10.96%. Meanwhile, shares fell an average of -15.38% with a range of -5.9% to -26.4% for the half-dozen red reactions.
Overall: The iEstimate and VeriFone Systems Inc.'s (NYSE:PAY) history suggests earnings that hug Wall Street's consensus; however, there could be some upside if our observation is on Target.
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