Going into this quarter, Wall Street wanted to buy into the idea of a VeriFone (NYSE:PAY)
turnaround. Not only were the shares up more than 20% from their low,
but the earnings estimate revisions had been pretty mild despite strong
share gains at rival Ingenico (Nasdaq:INGIY). Last and not least, instead of being worried about further gains from next-gen payment rivals like eBay (Nasdaq:EBAY), Intuit (Nasdaq:INTU), and Square, many sell-side analysts were speculating as to who was going to buy VeriFone to accelerate their market growth.
Fiscal second quarter results are going to throw a bucket of ice water
on a lot of that optimism. Not only are the share losses to Ingenico
(and other providers) becoming more apparent, but customer
dissatisfaction and industry pricing pressures are looming larger. I
won't rule out the possibility that the right CEO hire and the
development of a stronger value-added service portfolio could lead to an
eventual turnaround at VeriFone, but it's very clearly going to take
some time for that to happen.
Please follow this link to read more:
http://www.investopedia.com/stock-analysis/060613/wall-street-clearly-underestimating-verifones-struggles-pay-ingiy-ebay-intu-goog.aspx
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