Diamonds and Dogs
5/25/12
VeriFone Systems Inc. (PAY)VeriFone Systems has been beaten up today, down 15.53% at $38.01. The company which provides electronic payment services released their third-quarter outlook which fell short of Wall Street estimates. VeriFone said it expects to report an adjusted profit of 68 to 70 cents per share in the fiscal third quarter, and said revenue would be between $495 million and $500 million. Analysts were expecting earnings of 70 cents per share on $501.9 million in revenue. VeriFone Chief Financial Officer Robert Dykes said demand should remain strong, but its revenue is being hurt because the euro and other currencies are weakening relative to the dollar. One positive the company has is the fact that they acquiring competitors. Two companies that have been purchased by VeriFone are Hypercom Corp. for $420 million in stock and Point (a Swedish company) for $782 million. Regardless, VeriFone is struggling today.
Tempur Pedic International Inc. (TPX)
Tempur Pedic International Inc. got a nice cushion today, up 4.03% at $49.00. April sales of mattress's rose sharply for almost all mattress makers. Tempur Pedic was no exception; the company continued to outperform traditional mattress makers, with their shares also rising. Piper Jaffray upgraded the company and said that there was a 14.5% year-over-year increase in sales. Tempur Pedic saw a nice bounce today especially when the overall market declined.
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