Shares of VeriFone (NYSE:PAY) dropped sharply on Thursday after it reported third-quarter revenue that missed estimates and projected current-quarter revenue below Wall Street expectations.
VeriFone forecast fiscal fourth-quarter earnings of between 75 cents and 77 cents a share, on revenue of between $495 million and $500 million. Analysts had projected revenue of $521 million and earnings of 74 cents a share for the current quarter, the Associated Press noted.
Investors were unhappy with the estimates. Shares of VeriFone tumbled more than 10% in Thursday morning trading.
VeriFone said it earned $37.7 million during its fiscal third quarter, up from $26.3 million in the same period last year.
The company recorded revenue of $489.1 million during the quarter, up 54% from 2011. But that missed Wall Street revenue forecasts of $498.7 million. Adjusted EPS for the quarter was 75 cents, which beat analysts’ estimates of 70 cents.
VeriFone attributed the lower-than-expected revenue to a fire that destroyed one of its Brazilian facilities and the negative impact of currency exchange rates.
Looking forward, VeriFone estimated fiscal 2013 profits of between $3.25 and $3.30 a share and revenue of between $2.05 billion and $2.10 billion. Wall Street is looking for earnings of $3.23 a share and revenue of $2.15 billion next year.