Leigh Drogen

About the Author Leigh Drogen

Leigh Drogen is the Founder and CEO of Estimize. Estimize is an open financial estimates platform which facilitates the aggregation of fundamental estimates from independent, buy-side, and sell-side analysts, along with those of industry experts, private investors and students. By sourcing estimates from a diverse community of individuals, Estimize provides both a more accurate and more representative view of expectations compared to sell side only data. Leigh started his career as a quant trader at Geller Capital, a White Plains, NY based fund where he ran strategies that looked at earnings acceleration and analyst estimate revision models, as well as price momentum and several sentiment indicators. Leigh later went on to be the founder of Surfview Capital, a New York based asset management firm that used many of the same strategies as Geller Capital, with a focus on higher beta names on an intermediate term time frame. His educational background includes focus in economics and international relations, specifically war theory. He is a graduate with honors from Hunter College in New York City. You can contact Leigh by emailing him at Leigh@estimize.com

Investors expect another earnings beat from VeriFone

Electronic payment transaction processing company, VeriFone Systems (NYSE:PAY), is set to report earnings after the closing bell. Following a period of falling profits and stalled revenue, VeriFone has gotten its earnings power back into gear and has consistently outperformed Wall Street’s expectations.

One year ago the payment systems producer turned the corner on its sliding revenue. Earnings growth followed suit 6 months later, crossing into positive territory. In the past 2 periods earnings per share have increased by 67% and 63% respectively on a year over year basis.

One reason VeriFone’s earnings are suddenly on the rise is improving margins. A shift to more profitable businesses in the past year gave the company’s Q4 operating margin a boost from 13.2% in FQ4 2013 to 13.9% last quarter.

More broadly speaking VeriFone’s success can be attributed to increasingly widespread credit card usage and a series of strategic acquisitions which have panned out well. Investors have seen VeriFone demonstrate its ability to outperform the Wall Street consensus and expectations are accordingly high this afternoon. Contributing analysts on Estimize expect VeriFone to report 44 cents in earnings per share, that’s 3 cents better than the Wall Street consensus of 41 cents in EPS.

In the past 5 quarters VeriFone has outperformed estimates from both Estimize and Wall Street on the top and bottom line. The point-of-sale device maker has beaten Wall Street’s estimates by an average of 3 cents per share over that timeframe. Estimize contributors are setting the bar at the status quo, looking for another moderate beat after the close.

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