Diamonds and Dogs
6/6/13VeriFone Systems Inc. (PAY)
VeriFone Systems is getting its card declined today, down 20.87% at $17.37. The electronic payment company saw its shares fall after worse than expected earnings. Revenue in the second quarter came in at $430 million, and net income per share was announced at $0.42. Both revenue and EPS can in below analysts' expectations, which were $440.3 million and $0.47 per share respectively. The earnings miss also caused VeriFone management to lower its full year guidance. For the year, the company now sees revenue of $400 million, down significantly from its previous view of $460.5 million. VeriFone shares set a new 52-week low of $17.08 intraday.
Media General Inc. (MEG)
Media General is trading up big today, up 34.25% at $9.80. The television broadcast company saw its shares pop after news that it would merge with New Young Broadcasting. The two companies will combine in an all-stock transaction, forming a media enterprise with 30 stations in 27 markets, reaching 16.5 million, or 14% of U.S. TV households. The new company, still to be known as Media General and trading under the same ticker symbol, also expects to see free cash flow improve in the first year, and said cost-saving synergies would be the range of $25 million to $30 million. Media General Shares climbed to $9.95 today, just off of their 52-week high of $10.17.