VeriFone's Stock Rallies After Upbeat Results Offsets Downbeat Profit Outlook

Shares of VeriFone Systems rallied 3.8% in after-hours trade, after the electronic-payment systems company reported better-than-expected fiscal fourth-quarter results, which offset a downbeat profit outlook for the first quarter. For the quarter ended Oct. 31, the company reported net income of $31.1 million, or 27 cents a share, compared with a net loss of $247.7 million, or $2.26 a share, in the year-earlier period. Excluding non-recurring items, adjusted per-share earnings were 44 cents a share, above the FactSet consensus analyst estimate of 41 cents. Revenue rose 14% to $491 million, topping analyst forecasts of $483 million. For the current quarter, the company is projecting earnings per share of 40 cents and revenue in the range of $480 million to $485 million, while analysts were expecting 44 cents and $484 million, respectively. The stock had run up 23% this year through Monday, compared with a 7.6% gain in the S&P 500.