VeriFone Systems | $PAY Stock | Shares Sell Off On Earnings Report


VeriFone Systems, Inc. (NYSE: PAY)


As we near the end of the year and simultaneously the end of the earnings reporting in the last 3 months of the year, one company that is  highly associated with the retail industry reported their earnings on Tuesday December 12, 2017 after the market closed for trading.

The company, VeriFone Systems, reported their fiscal fourth-quarter net income  at +$3.1 million dollars, completely reversing a loss in the same period a year ago. Earnings after adjustments came in at $0.44 per share which beat the estimates of $0.43 per share analysts had been expecting.

This was the one bright spot in the earnings report- that they beat the earnings per share number. However, looking forward,  the company expects revenue to come in at about $418 million dollars where as analysts were expecting estimates of much higher revenues in the $462 million-dollar range.

This aspect of the earnings report is what caused the sell-off after the numbers were released.  Shares which closed the day up $0.28 at $18.47, ended up closing down 7.42% at $17.10 as of 8 p.m. Eastern Standard Time.

Some History On The Company

-Verifone was founded by William “Bill” Melton and incorporated in Hawaii in 1981, and named itself after its first product, the name standing for Verification telephone.

-Since the late 1980s, Verifone has held more than 60 percent of the U.S. market, and during the 1990s the company captured more than half of the international market for such systems

-Verifone went public in March 1990, raising more than $54 million

-Its principal product lines have included point-of-sale, merchant-operated, consumer-facing and self-service payment systems for multiple industries, notably financial, retail, hospitality, petroleum, government and healthcare markets. It provides countertop electronic payment terminals that accept card payment options Mobile payment,[43][44] chip and PIN, and Contactless payment,[45] including Near field communication (NFC)[46][47] as well as support Credit and Debit cards, EBT cards, EMV, and other PIN-based transactions; an array of software applications and application libraries; and portable solutions that support 3G, GPRS, Bluetooth, and WiFi technologies.

source: Wikipedia

PAY Technicals


The above price chart shows the intra-day price action on the left and the after-hours session action on the right-each on the 5 minute time frame in both instances. It is clearly evident on the right half of the charts, to see exactly when the earnings announcement became public and the shares sold off fairly hard in that first five minute red bar candle.

Verifone Profile

VeriFone Systems, Inc. provides payments and commerce solutions at the point of sale (POS) worldwide. It offers countertop solutions that accept payment options, such as contactless, NFC, mobile wallets, and EMV; PIN pads that support credit and debit card, EBT, EMV, and other PIN-based transactions; and multimedia consumer facing POS devices.

The company also provides portable payment devices, including small, portable, and handheld devices that enable merchants to accept electronic payments wherever wireless connectivity is available; and mobile solutions that attach to and interface with iOS, Android, or Windows-based smartphones and tablets.

In addition, it offers integrated electronic payment systems that combine electronic payment processing, fuel dispensing, and ECR functions, as well as secure payment systems for integration with petroleum pump controllers; unattended and self-service payment solutions designed to enable payment transactions in self-service, high-transaction volume, and public transportation environments; and network access solutions.

Further, the company provides other managed, terminal management, payment-enabled media, in-taxi payment, and security solutions; and server-based payment processing software and middleware.

Additionally, it offers installation, deployment, training, and application development and delivery solutions; project management, client education program, and consulting services; helpdesk support, equipment repair and maintenance, and software post-contract support services; and application libraries and development tools.

The company sells its products directly; and through third party distributors and partners. It serves financial services, retail, petroleum, restaurant, hospitality, taxi, transportation, and healthcare industries.

The company was formerly known as VeriFone Holdings, Inc. and changed its name to VeriFone Systems, Inc. in May 2010. VeriFone Systems, Inc. is headquartered in San Jose, California.-YahooFinance