Driven by EMV and Apple Pay-related sales, Verifone reported net earnings rose 22.8% in the fourth quarter (4Q/15) ending October 31st. Net revenues for the quarter rose 4.7% year-on-year (YOY)
However, even though a fairly strong performance, Verifone’s share price slipped in after hours trading and opened at $25.30 or down 4.6% this morning. (The stock is already down 23% this year.)
The sell-off was spurred by a soft forecast by Verifone.
Net revenues for the fourth quarter came in at $514 million, compared to $491 million in the year ago quarter. Net income for 4Q/15 was $38.2 million, compared to $31.1 million for 4Q/14.
Verifone notes it accelerated revenue growth in 2015 to 16% on a constant currency basis and improved its profitability. The company also generated improved cash flow and completed the first half of its $200 million stock repurchase authorization.
For fiscal 2016, the company expects non-GAAP net revenues of $2.090 billion to $2.110 billion, which at the mid-point is 5% annual growth or 9% annual growth on a constant currency basis.
Verifone also expects fiscal 2016 non-GAAP net income per diluted share of $2.15 to $2.17, representing growth of 18% at the mid-point over fiscal 2015 results, reflecting revenue growth, higher gross margins, and improved operating leverage. This guidance also reflects North America revenue growth of 5% and does not reflect revenue from pending acquisitions.
VERIFONE NET REVENUES
4Q/14: $491 million
1Q/15: $486 million
2Q/15: $490 million
3Q/15: $510 million
4Q/15: $514 million
Verifone’s market capitalization is $3.0 billion.
For data, background and forecasts on Verifone: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 payments metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
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