VeriFone Systems Inc (NYSE: PAY) limped toward the finish on Friday markets, after the company posted a loss for the second quarter and lowered its FY17 outlook.
The company said its earnings came in at $33.3 million, or $0.30 per share, lower than $51.9 million, or $0.47 per share, in last year's second quarter.
Analysts had expected the company to earn $0.30 per share. The company said revenue for the quarter fell 10.9% to $474 million, down from $532 million last year.
Full-fiscal-year guidance for the San Jose-based company features GAAP net revenues of approximately $1.861 billion to $1.866 billion, a GAAP net loss per diluted share of approximately $0.51 to $0.53.
Third-quarter guidance looks for GAAP and Non-GAAP net revenues of approximately $463 million to $465 million, and GAAP net income per diluted share of approximately $0.14 to $0.15
An analyst with Barclays reiterated his equal weight rating on VeriFone, and cut his price target to $20 despite seeing longer-term growth opportunities for the company.
Q2 results highlighted an ongoing restructuring effort by the company and the analyst pointed out three key issues: the company is transitioning its petro media business into a Joint Venture with GSTV (<$20 million in annual revenues);
PAY intends to divest its China operations to a minority stake (estimaged $15 million impact in H2), and; PAY is looking to exit its North America taxi business.
Verifone shares took some knocks just ahead of Friday’s closing bell, falling 60 cents, or 3.3%, to $17.72.
