VeriFone (PAY) Stock | Not “PAYing” Off


VeriFone Systems (NYSE:PAY)


Chances are if you have ever made a purchase with anything other than cash then you have used the technology that VeriFone Systems produces. They make our shopping and consuming lives so much easier and fluid. These various forms of payment methods are used in everyday purchases by consumers, government and healthcare business segments and also include the highly popular gift card marketplace.


PAY Earnings Details

On Thursday September 3, 2015, VeriFone systems reported their latest quarterly earnings that beat analysts’ expectations, and actually swung to a profit for the quarter. However, their forward-looking comments and expectations in the next quarter did not please analysts nor traders in the aftermarket session. The company reported earnings of $0.47 a share versus the expectation of one penny less at $0.46 a share. This came on revenues of nearly $510 million versus analyst estimates of just over $500 million. Sales for the latest quarter were helped by security needs and EMV migration, along with expanded footprint of connected devices.


Price Action

In the regular market action during the day, shares closed up $0.18 at $31.05. However, shares were fairly volatile in the aftermarket and finally closed down 3.35% at $30.01 or down -$1.04. Shares had been down as much as nearly 6% in the after-market trading.


CEO Comments

VeriFone’s CEO, Mr. Paul Calant, offered up these points in a Conference Call:

 “Q3 was a record quarter for Verifone. We saw the first half-billion-dollar revenue quarter in the company’s history; grew our non-GAAP earnings per share by 18 percent over last year; and outpaced both market expectations and the industry. In addition, we will begin to launch our next generation solutions at the end of this year. As we continue to make the turn from mostly shipping terminals to delivering fully integrated solutions, our next-generation of connected devices, services, and digital commerce applications will drive unprecedented value for our clients, and long-term growth for Verifone.”


PAY Technicals


Looking at the accompanying chart you will see that VeriFone has traded in a fairly visible channel ranging from the $38.50 level down to the $31 level since the beginning of 2015, including the notable exception of the market selloff one week prior. We will have to monitor it further to see if more selling from the aftermarket trading continues or if the channel is reestablished and the share price turns back higher.


About VeriFone Systems

VeriFone Systems, Inc. designs, markets, and services electronic payment solutions at the point of sale (POS) worldwide. It provides countertop electronic payment systems that accept card payment options, such as NFC, mobile wallets, chip and PIN, and contactless payments, as well as support credit and debit card, EBT, EMV, and other PIN-based transactions; and a portfolio of application libraries and development tools. The company also offers multimedia consumer facing POS devices; unattended and self-service payment solutions designed to enable payment transactions in self-service environments; and integrated electronic payment systems that combine electronic payment processing, fuel dispensing, and ECR functions, as well as payment systems for integration. In addition, it provides mobile payment solutions for various segments of the mobile point of sale environment; contactless peripherals; network access solutions; security solutions; payment-as-a-service and other managed services, terminal management, payment-enabled media, and payment system security solutions; and server-based payment processing software and middleware, as well as taxi payment solutions. Further, the company offers equipment repair or maintenance, remote terminal management, software post-contract support, customized application development, helpdesk, customer service, warehousing, and encryption or tokenization services. It serves financial institutions, payment processors, petroleum companies, transportation companies, government organizations, healthcare companies, and quick service restaurants; taxi fleets, advertisers and media companies, and merchants and retailers; and distributors, banks and acquirers, system integrators, and independent sales organizations. The company was formerly known as VeriFone Holdings, Inc. and changed its name to VeriFone Systems, Inc. in May 2010. VeriFone Systems, Inc. is headquartered in San Jose, California. Yahoo! Finance