Q2 Preview: Any Near-Term Weakness in Verifone (PAY) Should Be Offset by Long-Term Goals
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Price: $40.00 +4.11%
Rating Summary:
7 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Verifone Systems (NYSE: PAY) shares are lower on the session as investors might be expecting the worse heading into quarterly results.
Expected out after the market closes Thursday, the Street is looking for second-quarter 2012 EPS of 61 cents on revs of $471.8 million, compared with EPS of 46 cents on revs of $292 million reported in the same period last year and EPS of 58 cents and revs of $425 million produced during Verifone's fourth-quarter 2011.
Investors should look at eBay's (Nasdaq: EBAY) PayPal unit heading into report. During its latest quarter, PayPal reported a 32 percent increase in revs amid total payment volume which was up 24 percent. This may bode well for Verifone, which is looking to partner up with PayPal on several ventures.
Data from Streetinsider.com's Ratings Insider has eight analysts with a Buy rating, two at Neutral, and two with a Sell. The price target average on the Street is $54.50, with a low of $40 and high of $65.
Into results, Goldman Sachs sees EPS of 61 cents per share on revs of $467.6 million. Goldman is positive on Verifone, saying it represents "unique direct investment on a technology led multi-year POS terminal upgrade cycle."
For the current quarter, Goldman is looking for management to address such issues as contribution from recent acquisitions, momentum on the strategy to increase services and software-based revs, and the progress behind EMV and NFC terminal adaption.
Other than that, implied volatility on Verifone is up just over 2 percent from Wednesday's close and 126 percent over its trailing annual average.
Verifone will be holding a conference call at 1:30pm PDT (4:30pm EDT). Click here to go to the Verifone's IR website for the event.
Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out Verifone's past performance at Streetinsider's Verifone's Income Statement.
Expected out after the market closes Thursday, the Street is looking for second-quarter 2012 EPS of 61 cents on revs of $471.8 million, compared with EPS of 46 cents on revs of $292 million reported in the same period last year and EPS of 58 cents and revs of $425 million produced during Verifone's fourth-quarter 2011.
Investors should look at eBay's (Nasdaq: EBAY) PayPal unit heading into report. During its latest quarter, PayPal reported a 32 percent increase in revs amid total payment volume which was up 24 percent. This may bode well for Verifone, which is looking to partner up with PayPal on several ventures.
Data from Streetinsider.com's Ratings Insider has eight analysts with a Buy rating, two at Neutral, and two with a Sell. The price target average on the Street is $54.50, with a low of $40 and high of $65.
Into results, Goldman Sachs sees EPS of 61 cents per share on revs of $467.6 million. Goldman is positive on Verifone, saying it represents "unique direct investment on a technology led multi-year POS terminal upgrade cycle."
For the current quarter, Goldman is looking for management to address such issues as contribution from recent acquisitions, momentum on the strategy to increase services and software-based revs, and the progress behind EMV and NFC terminal adaption.
Other than that, implied volatility on Verifone is up just over 2 percent from Wednesday's close and 126 percent over its trailing annual average.
Verifone will be holding a conference call at 1:30pm PDT (4:30pm EDT). Click here to go to the Verifone's IR website for the event.
Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of their release. You can also check out Verifone's past performance at Streetinsider's Verifone's Income Statement.
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