VeriFone Results Top Estimates

(RTTNews) - Credit card swipe machine maker VeriFone Systems Inc. (PAY) said Tuesday after the markets closed that it swung to a first quarter loss, as higher costs and expenses more than offset a slight increase in revenue.

However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its adjusted revenue.

"Our first quarter financial results exceeded our guidance, and I am pleased with our progress in our operational initiatives launched in Q1," said Paul Galant, Chief Executive Officer of VeriFone. VeriFone shares are currently gaining 7.86% in after hours trading after closing the day's regular trading session at $29.25, down 7 cents. The shares trade in a 52-week range of $15.34 to $30.72.

For the first quarter ended January 31, 2014, the San Jose, California-based company reported a net loss of $16.2 million or $0.15 per share, compared to net income of $11.8 million or $0.11 per share for the year-ago quarter.

Excluding items, adjusted net income for the first quarter was $34.8 million or $0.31 per share, compared to $56.3 million or $0.51 per share in the prior year quarter.

On average, 14 analyst polled by Thomson Reuters expected the company to earn $0.27 per share for the first quarter. Analysts' estimates typically exclude special items.

Gross margin for the quarter narrowed to 39% from 40% a year ago, while adjusted gross margin shrank to 42% from 44% last year.

Net revenues for the first quarter rose 1.7% to $436.1 million from $428.7 million a year ago, while adjusted net revenues for the quarter grew 1.8% to $437.2 million from $429.6 million last year. Eleven analysts had a consensus revenue estimate of $428.55 million for the first quarter.

For the first quarter, VeriFone had forecast adjusted earnings of $0.26 per share and adjusted net revenue of $425 million to $430 million.

Looking forward to the second quarter, the company forecast adjusted net revenues of $440 million to $445 million and adjusted earnings of $0.30 to $0.32 per share. Analysts currently expect the company to earn $0.31 per share on revenue of $439.06 million for the second quarter.

For the fiscal year 2014, the company now forecasts adjusted net revenues of $1.78 billion to $1.81 billion and adjusted earnings of $1.40 per share. Previously, the company forecast adjusted revenue of $1.77 billion to $1.80 billion and adjusted earnings of $1.35 to $1.40 per share.

Analysts currently expect the company to earn $1.39 per share on revenue of $1.79 billion for the fiscal year 2014.