VeriFone (PAY) was once almost untouchable in its industry, but now it seems everyone is gunning for digital — and especially mobile — payments.
Fourth-quarter earnings are on tap for mid-December, and they sure aren’t looking pretty. Earnings per share are forecast to drop to 26 cents from 76 cents a year ago. Meanwhile, revenue is projected to slide nearly 14%.
Furthermore, VeriFone stock still looks expensive relative to growth prospects. PAY goes for 16 times forward earnings even though it’s forecast to grow those earnings at an average pace of only 5% a year.