VeriFone Systems Inc (PAY) Stock Surges Despite Surprising Q3 Loss

VeriFone Systems Inc (NYSE:PAY) reported a year-over-year decline in its earnings call, but shares still rose.

VeriFone Systems Inc (PAY)The San Jose, Calif.-based company lost $71 million in its third quarter, amounting to a per-share loss of 63 cents. In the year-ago period, VeriFone Systems los $31.1 million, or 28 cents per share.

On an adjusted basis, the company earned 36 cents per share over the three months, in line with the high-end of Zacks Investment Research‘s consensus estimate of 35 to 36 cents per share.

Revenue also slipped year-over-year, coming in at $467 million, while the year-ago figure yielded revenue of $488 million. Analysts’ outlook called for revenue of $364 million.

The third-quarter declines in earnings can be attributed to restructuring and divestiture charges in China and India, as well as the spin of its Petro Media business. VeriFone Systems has also been trying to unload its taxi business.

Positive elements of the period include increased adoption of its mobile POS products as more of its retail clients have been using it to enhance the consumer checkout experience of their products.

The company projects that its retail business will grow as U.S. retailers are opening 4,080 more stores in 2017 than they are closing. In 2018, this figure will be 5,500.

VeriFone Systems’ fourth-quarter guidance calls for earnings of 43 cents per share, compared to analysts’ forecast of 46 cents per share. Revenue is slated to be between $470 million and $473 million, below Wall Street’s estimate of $474 million.

PAY shares took a hit early Friday, before rising back up 0.7% late in the afternoon.

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