Diamonds and Dogs
9/6/12VeriFone Systems Inc. (PAY)
VeriFone Systems' card was declined today, down 13.65% at $30.55. The electronic payment system company saw its shares sink after releasing a poor quarterly earnings report. For the third quarter, VeriFone missed estimates on the top line, with revenues of $489.1 million versus the consensus of $498 million. Management cited unfavorable currency movements, intensifying competition in Europe, and a fire in Brazil for the revenue shortfall. These issues also caused VeriFone to cut their full year guidance; another reason for the decline in share price. The company sees fourth-quarter adjusted EPS of $0.75 to $0.77 on revenue of just $495 million to $500 million, versus analyst estimates of $0.74 and $521 million. VeriFone is down on a very positive day for the market; trading just $0.50 above its 52-week low.
The Men's Wearhouse Inc. (MW)
Men's Wearhouse investors are "going to like the way they look, I guarantee it." Shares are trading higher today, up 18.71% at $37.80. The company saw shares dress up after improved second quarter results and better than expected full year guidance. Men's Wearhouse reported net income of $59.4 million, or $1.15 per share, up from $57.1 million, or $1.09 per share, in the same quarter last year. CEO Dough Ewert said sales trends were better than expected as shoppers bought more men's clothing both at full and sale prices. The positive quarter allowed management to increase its full year expected profit to between $2.74 and $2.80 per share, while analysts expected $2.71 per share. Men's Wearhouse is dressed to impress today trading up closer to their 52-week high.