VeriFone Results Top Estimates

(RTTNews) - Credit- and debit-card swipe machine maker VeriFone Systems Inc. (PAY) said Monday after the markets closed that it swung to a fourth quarter profit, helped by a double digit revenue growth and the absence of a hefty income tax provision that the company recorded last year.

The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its adjusted revenue. At the same time, the company forecast first quarter and fiscal 2015 earnings below analysts' current consensus estimates.

"I'm proud of the team at Verifone and pleased with our performance in Q4 and FY14. We again exceeded our guidance," said Paul Galant, Chief Executive Officer of Verifone. "We are halfway through our transformation initiative and are now a more nimble and focused company. 2015 is the Year of Product at Verifone as we leverage our growing Terminal Solutions business to become a platform company providing Payment-as-a-Service and Commerce Enablement."

VeriFone shares are currently gaining 1.94% in after hours trading after closing the day's regular trading session at $33.06, up 5 cents. The shares trade in a 52-week range of $22.60 to $38.26.

For the fourth quarter ended October 31, 2014, the San Jose, California-based company reported net income of $31.1 million or $0.27 per share, compared to a net loss of $247.7 million or $2.26 per share for the year-ago quarter.

Excluding items, adjusted net income for the fourth quarter was $50.1 million or $0.44 per share, compared to $30.3 million or $0.27 per share in the prior year quarter.

On average, 19 analyst polled by Thomson Reuters expected the company to earn $0.41 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Gross margin for the quarter improved to 40.1% from 38.0% a year ago, while adjusted gross margin increased to 42.3% from 41.2% last year.

Net revenue for the fourth quarter rose 14% to $490.5 million from $431.2 million a year earlier, while adjusted net revenue increased 13% to $490.7 million from $432.3 million last year. Twelve analysts had a consensus revenue estimate of $483.42 million for the fourth quarter.

For the fourth quarter, the company had forecast adjusted net revenues of $478 million to $483 million and adjusted earnings of $0.39 to $0.40 per share.

Looking forward to the first quarter, the company forecasts adjusted net revenues of $480 million to $485 million and adjusted earnings of $0.40 per share. Analysts currently expect the company to earn $0.45 per share on revenue of $482.94 million for the first quarter.

For the fiscal year 2015, the company forecasts adjusted net revenues of $2.02 billion to $2.04 billion and adjusted earnings of $1.85 to $1.90 per share. Analysts currently expect the company to earn $1.97 per share on revenue of $2.03 billion for the fiscal year 2015.