VeriFone Systems (PAY) 4Q EPS Beat Driven by Strong NA Growth; Piper Jaffray Reiterates Outperform
Piper Jaffray reiterated an Overweight rating and $38.00 price target on VeriFone (NYSE: PAY) following the company's 4Q earnings report. PAY reported non-GAAP EPS of $0.49, coming in ahead of consensus estimates of $0.48. The beat was driven by stronger North America growth, though partially offset by softness in Latin America and EMEA due to FX and macroeconomic headwinds.
Analyst Jason Deleeuw commented, "PAY reported non-GAAP EPS of $0.49, beating consensus of $0.48 driven by stronger North America growth, though partially offset by softness in LatAm and EMEA due to FX and macroeconomic headwinds. Still, total revenue growth remains solid with reported/constant FX growth of 5%/15%. PAY's FY '16 non-GAAP EPS guidance of $2.15-$2.17 fell short of consensus of $2.18, but bracketed our $2.15 estimate. FY '16 revenue guidance assumes solid HSD constant FX revenue growth driven by 5% (previously 3%) North America growth and rest of world market share gains. We slightly increase our FY ’16 revenue/non-GAAP EPS estimates from $2,070M/$2.15 to $2,100M/ $2.16 reflecting stronger North America revenue growth. We reiterate our OW rating and $38 PT."
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Shares of VeriFone closed at $26.43 yesterday.