reached a new 52-week high of $32.94 on Wednesday, Mar 12, 2014.
The bullish run reflects VeriFone's impressive first-quarter
results and optimistic guidance.
ABERCROMBIE (ANF): Free Stock Analysis Report
AMER EXPRESS CO (AXP): Free Stock Analysis
COSTCO WHOLE CP (COST): Free Stock Analysis
VERIFONE SYSTMS (PAY): Free Stock Analysis
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The closing price of VeriFone on Mar 13 was $32.48, representing
a strong one-year return of about 54.6% and a year-to-date return
of about 26.0%. The S&P 500 jumped 20.2% and 2.0%,
respectively, during the same period.
VeriFone delivered a positive earnings surprise of 5.7% over the
past four quarters. This Zacks Rank #2 (Buy) stock has a market
cap of $3.23 billion and long-term expected earnings growth rate
Key Growth Catalysts
VeriFone reported better-than-expected first-quarter 2014
results. Moreover, management's optimistic industry outlook is a
major positive that drove the share price gain.
Earnings of 20 cents per share (including stock-based
compensation) beat the Zacks Consensus Estimate by a nickel.
Revenues (excluding amortization of step-down in deferred
services net revenues at acquisition) climbed 1.8% year over year
to $437.1 million, better than the Zacks Consensus Estimate of
VeriFone expects non-GAAP revenues in the range of $440.0-$445.0
million for the second quarter of fiscal 2014. This reflects
approximately 4.0% year-over-year growth. Management expects
second-quarter non-GAAP earnings in the range of 30 to 32 cents.
The mid-point of the guided range is down from 36 cents reported
in the year-ago quarter.
Industry trends toward more secured products are expected to
increase demand for new products, which will replace existing
legacy products. This bodes well for VeriFone, going forward.
Moreover, VeriFone's innovative product pipeline and customer
wins such as
Abercrombie & Fitch (
are significant positives.
The partnership with
American Express (
will also boost VeriFone's customer base, going forward.
Moreover, VeriFone has strong growth opportunities in overseas
markets, particularly in emerging economies such as Brazil,
China, Russia and India.
The Zacks Consensus Estimate for the second quarter remained
steady at 20 cents over the past 7 days. For fiscal 2014, the
estimate has remained unchanged at 94 cents over the same time
frame. For fiscal 2015, the earnings estimate has remained
unchanged at $1.48 per share over the same period.