A Solid End To The Fiscal Year
VeriFone has done relatively well in terms of beating estimates over the past year or so, and the company ended this fiscal year on the same note. Revenue rose 27%, with 40% growth in the U.S. and 18% internationally.
Profitability also improved this quarter. Gross margin (on a non-GAAP basis) rose about two points to 40%, and earnings were better on an operating and net basis, whether investors chose to use GAAP or non-GAAP accounting.
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4 comments:
I think prospects for Verifone are quite good.Longer term there is a clear trend for emerging markets to increase PoS terminals per head. Moreover, the industry is consolidating and they have leadership. They do look set to generate significant cash flow in the next few years.
However, like you, I wouldn't be a buyer at this price..
http://earningsview.blogspot.com/2010/12/verifone-pay-cyclical-stock-capable-of.html
Lee, I'm not sure if that link is your blog or not, but I like the analysis there (or at least the depth of effort).
I'm still shocked that VeriFone doesn't have a big competitor breathing down their neck. It would seem like a natural market for a company like NCR or maybe Fujitsu.
Thanks Stephen, and I really like what you are doing on this blog. It's the kind of thing I want to do with my blog.
I think Verifone has scale now and a competitor will have to buy into this market in order to enter it. Ingenico are French, which usually means a takeover would be difficult. Therefore, I can see a larger firm taking a look at Verifone down the line.
On a related note, take a look at the e-payment processors. The sector is on fire this year. Visa made a big acquisition. Mastercard bought Datacash (UK) and I think the German co Wire Card is very cheap and worth a look. Anyhow, just an idea for you. All the best,
Lee
Thanks Lee - always interested in finding good ideas.
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