VeriFone Rallies After Ingenico’s Comments: San Francisco MoverOlga Kharif
VeriFone Systems Inc. rose the most in more than six weeks after competitor Ingenico SA’s comments suggested that the maker of credit-card terminals is taking back market share.
VeriFone shares gained 7.6 percent to $20.07 at 3:02 p.m. in New York after climbing as much as 13 percent for the biggest intraday advance since March 6. The San Jose, California-based company’s stock had fallen 37 percent this year through yesterday, as the Standard & Poor’s 500 Index rose 9.6 percent.
Ingenico executives said yesterday on an earnings conference call that business in the early part of the first quarter was “ extremely high” and in the rest was “much more in line” with its full-year outlook. Investors took that to mean that later in the quarter, VeriFone began to regain market share, Gil Luria, a Wedbush Securities Inc. analyst in Los Angeles, said in an interview. Luria rates VeriFone neutral.
The comments on the Neuilly-sur-Seine, France-based company’s call may have eased concerns that have dogged VeriFone since March, when Chief Executive Officer Douglas Bergeron was dismissed. His departure followed VeriFone’s forecast for fiscal second-quarter profit, which trailed analysts’ estimates amid diminished demand for credit-card terminals.