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Earnings estimates for VeriFone Systems, Inc. (NYSE:PAY) for fiscal 2012 have been static in the last few days ahead of the company’s first quarter results expected on March 5, 2012.

Earnings estimates for the first quarter also stand still with no movement in either direction by the seven analysts covering the stock.

For the first fiscal quarter, VeriFone expects to report net revenues between $415 million and $420 million. Excluding stock-based compensation, net income per diluted share is projected between $0.50 and $0.52.

For fiscal 2012, VeriFone expects to report net revenues between $1.90 billion and $1.92 billion. Excluding stock-based compensation, net income per diluted share is projected between $2.53 and $2.60.

Earlier, VeriFone reported in-line results for the fourth quarter of fiscal 2011. The company reported revenues of $410.7 million in the fourth quarter of fiscal 2011, up 48.8% year over year and up 29.6% sequentially.

Gross margin (excluding stock-based compensation and one-time items) came in at 40.0% compared to 43% in the prior quarter and 40% in the year-ago quarter. Including these items, gross margins came in at 31% compared to 42% in the previous quarter and 38% in the year-ago quarter.

Net income came in at $198.8 million or $1.84 per diluted share compared to net income of $49.5 million or $0.55 in the year-ago quarter and net income of $26.3 million or $0.29 in the previous quarter.

Excluding one-time charges but including stock-based compensation expense, net income was $0.44 per share, in line with the Zacks Consensus Estimate.

We remain positive on VeriFone Holdings on the basis of growing organic revenue, strategic acquisitions and a growing high margin services mix in total revenues. The recent acquisitions of Hypercom and Point strengthen the company’s foothold in Europe along with driving significant synergies.

We maintain an Outperform recommendation on VeriFone. Our recommendation is supported by Zacks #2 Rank, which translates into a short-term rating of Buy.

VERIFONE HLDGS: Free Stock Analysis Report

Source: VeriFone Systems: Earnings Preview