VeriFone sinks after guidance miss, but Citi remains positive

VeriFone (PAY), which provides point of sale payment devices, is sinking after the company provided lower than expected first quarter earnings per share guidance. However, the firm's fiscal year 2013 earnings guidance was in-line with analysts' expectations. Furthermore, the company said that its North America business generated organic growth of 22% in the fourth quarter, as its investments in that region bore fruit. VeriFone plans to make similar investments in other regions next year, and it believes that growth in those markets will accelerate "later in 2013 and into 2014." Also upbeat on VeriFone's results and outlook was Citigroup analyst Philip Stiller. In a note to investors earlier today, the analyst wrote that today's decline in VeriFone's stock creates a good buying opportunity for patient investors. VeriFone's trends in the U.S. improved, and it's on track for a "multi-quarter recovery" going into 2013, stated the analyst, who maintains a $47 price target and Buy rating on the shares. In early trading, VeriFone fell $31.6, or 9.51%, to $30.07.

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