Shares of VeriFone Systems Drop after Company Misses Expectations in Q2 and Gives a Downbeat Outlook
San Jose, California based VeriFone Systems saw its shares drop during the after hour trading to $21.98 or by 22.14percent on Tuesday following a weak guidance and a quarterly result that missed expectations.
After the market closed, the electronic payments company reported its quarterly earnings of 47 cents a share missing the analysts' expectation of 52 cents a share. The quarterly revenue was reported as $526 million even that figure failed to keep up with analysts' estimates of $530.1 million.
In a statement, Paul Galant, CEO of the company said "Q2 was a mixed quarter for Verifone as we grew our business, but experienced several difficult market dynamics."
Galant added that the company is conducting a "disciplined strategic review" right now to tackle the underperforming businesses and trim down the operating expenses in general.
He added, "We are aggressively executing mitigating actions including a headcount restructuring and a review of underperforming businesses."
Overall for the fiscal 2016, the company forecasts earnings of $1.85 a share. The analysts expect earnings of $2.23 a share. The downbeat guidance provided by the company also caused the shares to slip.