Verifone Systems Inc., one of the world’s largest makers of payment-terminal hardware, tumbled in late trading after cutting its full-year profit and sales forecasts for a second straight quarter.
Fiscal 2016 earnings will be $1.64 to $1.65 a share, down from a June forecast of $1.85, San Jose, California-based Verifone said Thursday in a statement. Sales will be $2 billion, compared with its June outlook of $2.1 billion. The shares slid 12 percent to $17.77 at 4:21 p.m, and dropped as much as 14 percent. They have lost 28 percent this year.
While Verifone has reaped benefits from the U.S.’s shift to terminals that accept credit and debit cards with embedded digital chips, many merchants have already made the switch, leading some investors to worry about a sales slowdown. And some merchants that bought Verifone hardware haven’t been able to turn their machines on, because of delays in getting them certified. Those delays have impacted the company’s service revenues.
“We are managing through what we believe are difficult but temporary local market and lingering EMV adoption issues,” Chief Executive Officer Paul Galant said in the statement.
In June, the shares slid the most in more than three years after the company cut its outlook for full-year earnings by as much as 17 percent.
“The factors dragging results down appear to be temporary, but they are now unlikely to reverse until 2018,” said Gil Luria, an analyst at Wedbush Securities Inc.