Can VeriFone Deliver Double-Digit Earnings Growth?

Shares of VeriFone Systems Inc (NYSE: PAY) are up on Wednesday, ahead of the announcement of the company’s second quarter financial results scheduled for Thursday after the market closes.

Management guided year-over-year earnings growth of 13.5 percent, to $0.42 per share, but only 4.2 percent revenue growth, to $487 million. For their part, experts are modeling earnings $0.01 above guidance, at $0.43 per share, on revenue of $489.39 million, while the crowd is projecting earnings of $0.45 per share on revenue of $491.6 million.

VeriFone has managed to outperform or match both estimates and guidance in the last seven quarters.

The Street’s consensus fell substantially between February and March, before establishing in the $0.43 level. On the opposite, the crowd’s consensus surged as the earnings date got closer.

Related Link: Goldman Just Upgraded VeriFone Because It's 'Not A One Trick Pony'

A Changed Company

In a recent report, analysts at Imperial Capital initiated coverage of VeriFone with an Outperform rating and a $44 price target.

The analysts explained that, “The new management team under CEO Paul Galant has spent the last year and a half completely revamping VeriFone's approach and has implemented strategic organizational and operational changes that we believe could allow VeriFone to operate as a unified company and deliver holistic solutions for its customers.”