On Friday morning, VeriFone Systems Inc.'s (PAY, Financial) stock opened lower, but went up 0.5% on the back of the company reporting its financial results for the third quarter of fiscal 2017. The company posted adjusted EPS of 36 cents, in line with expectations. Revenue of $467 million beat the consensus estimate by $2.77 million, but was 5.2% lower from the year-ago quarter.
CEO Paul Galant was pleased with VeriFone's performance and by the progress made in divesting non-core businesses, which helped it achieve objectives for next generation products.
“We continue to grow Verifone’s annuity services business by partnering with our clients to connect more of their device footprint to our payments and commerce services platform," he said.
In Latin America, the company's revenues were higher in Argentina, Brazil and Chile. Further, in France and Germany results were good with robust demand.
Year to date, the stock has gained 10%, as illustrated in the graph below:
Guidance for the next quarter is weak with GAAP and non-GAAP net revenues of approximately $470 million to $473 million. Further, the company expects GAAP net income per diluted share of approximately 22 cents and non-GAAP net income per diluted share of 43 cents, which reflects a reduction from the previous guidance due to divesting its taxi business. For full fiscal 2017, GAAP net revenues are projected to be $1.864 billion to $1.867 billion. Moreover, GAAP net loss per diluted share is forecasted to be $1.36 with non-GAAP net revenues between $1.867 billion and $1.870 billion. The company expects non-GAAP net income per diluted share of $1.30.
Disclosure: The author holds no position in any stocks mentioned
