EMV Migration Drives Verifone’s Earnings

Verifone’s latest quarterly results got a boost from the movement by companies to embrace chip cards, in tandem with the Oct. 2015 EMV deadline in the United States. The quarter, which ended in October, topped the company’s own expectations, with net income per share of $0.33 coming up year over year from 2014’s $0.27 and, on an adjusted basis, the number rose to $0.49, up from $0.44.

Adjusted EPS typically excludes stock compensation and expenses that companies deem non-recurring in nature. Revenues grew by 15 percent with the exclusion of currency impacts. The $0.49 seen in the latest quarter was better than the $0.44 to $0.46 per share the company itself forecasted, noted The Wall Street Journal.

And yet, the stock slipped, down 3 percent in extended trading after the market closed, as projections made by management came in below the Street.

Despite the growth in POS systems and the widening embrace of Apple Pay, the company said that for the full fiscal year, which ends in Oct. 2016, the earnings per share should come in at a range of $2.15 to $2.17 and sales should be between $2.09 billion and $2.11 billion. The consensus has a respective $2.18 in earnings and $2.1 billion in sales. For the current quarter, the company said that net income per share would be about $0.45, which is a bit below the Street at $0.50, while revenues are projected to be just a tad light at $500 million versus the consensus of $503 million.

Turning to slides issued alongside results, the company said that it had seen growth in the Unites States of roughly 5 percent, driving its FY 2016 outlook, with an 8 million device opportunity in place for the country. And payments and commerce are likely to converge at least enough to grow service business at the company by about 8 percent, according to the slides.