VeriFone Systems Inc (NYSE:PAY) reports fiscal second quarter results after tomorrow’s closing bell. The Estimize community is looking for EPS of $0.45, two pennies higher than the Street and three cents higher than company issued guidance. Revenues expectations of $491.6M are also higher than estimates from Wall Street and company guidance. This would mean year-over-year earnings growth of 22% and revenue growth of 5%.
VeriFone produces electronic payment terminals and makes money from customer transactions. The company is poised to do well for the rest of the year as demand rises for Europay, Mastercard, Visa (EMV) terminals and as mobile payments increase in popularity. Newer credit cards have EMV chips that help protect a holder from fraud. In October, all merchants are required to use the latest payment terminals that support EMV chips as opposed to the older systems that only read magnetic strips. Those that don’t upgrade will be liable for fraud that takes place in point-of-sale transactions, a liability previously taken on by credit card issuers.
Near field communication, the technology that allows two devices to communicate via radio waves when in close vicinity, is another area that will benefit the company. This is the technology that enables mobile wave-and-pay phone payments at merchant registers through apps such as Google Wallet and Apple Pay.