On Tuesday, American electronic payment transactions company Verifone (NYSE:PAY) posted its fourth-quarter earnings results. Despite a mostly upbeat earnings report and quarterly growth, shares of the company slipped down by more than 7% during Tuesday’s trading session.
The company known for being a leader in payments and commerce solutions worldwide delivered a net revenue of $1.887 billion for the three months that ended on October 31.
During the third quarter, VeriFone was also able to beat most revenue estimates after the company posted $466.9 million. Despite the numbers being lower by 4.3% during the same quarter last year, VeriFone was still able to beat most revenue estimates.
VeriFone attributed the decline due to the weak activity in the Asia Pacific and North America is slightly offset by the strong revenue performance of the company in places such the Middle East, Africa, and Europe as well as in Latin America.
VeriFone was then under the process of divesting in the taxi business with the company being able to complete operations restructuring in China during the mid-year with the company holding a minor stake in a local company which was newly created.
The company is expected to use their Taxi divestiture net proceeds including all available cash into completing its remaining $50 million authorized under its $200 million stock buyback program announced previously. Aside from this, another $100 million stock repurchase program was also authorized by the company’s board of directors which is needed to be executed in the next twelve to eighteen months.
These efforts were expected to boost the company’s services gross margin with the results expected to influence overall growth. Also during the previous earnings report, the company forecasted a growth in its operations in North America as they head into the fiscal year 2018. However, the results did not please the investors after shares of VeriFone slumped by more than 5% following the release of their third-quarter earnings report. However, the stock repurchase program is still subject to other factors such as market conditions.
For the fourth quarter earnings numbers, the company posted net revenues of $477 million with their net income coming in at $0.03 per diluted share. The revenue of Verifone also came at $208 million from their record services.
For the upcoming fiscal year 2018, the company is expecting net revenues of between $1.775 billion to $1.8 billion representing a single digit growth excluding the taxi business of the company in China in the prior year.