(Reuters) - VeriFone Systems Inc (PAY.N), a maker of credit card swipe machines, raised its full-year revenue forecast for the third time, encouraged by strong sales of devices that can accept chip-embedded credit cards.
Shares of the company, which also reported better-than- expected third-quarter revenue and boosted its full-year profit forecast, were up 2.5 percent in premarket trading.
VeriFone is benefiting as retailers in the United States upgrade their point-of-sale terminals to systems that are compatible with more secure credit cards in the wake of several data breaches, including the one at Target Corp (TGT.N).
VeriFone’s French rival, Ingenico (INGC.PA), also raised its growth outlook last month as sales increased due to the transition to chip-and-pin payment terminals in the United States.
VeriFone said it expects adjusted profit of $1.46-$1.47 per share on revenue of $1.858-$1.863 billion for the year ending in October. It had previously forecast $1.42-$1.44 per share on revenue of $1.825-$1.835 billion.
Analysts were expecting a profit of $1.45 per share on revenue of $1.83 billion, according to Thomson Reuters I/B/E/S.
The company also forecast adjusted profit of 39-40 cents per share on revenue of $478-$483 million for the current quarter.
Analysts were expecting a profit of 42 cents per share on revenue of $470.1 million.
For the third quarter, net loss attributable to the company’s stockholders increased to $29 million, or 26 cents per share, in the quarter ended July 31, from a loss of $1.9 million, or 2 cents per share.
Excluding items, the company earned 40 cents per share.
Revenue rose 14 percent to $476 million.
Analysts had expected a profit of 35 cents per share on revenue of $458.9 million.
VeriFone’s shares were trading at $35.39 before the bell. The stock has gained about 29 percent so far this year.
Reporting by Soham Chatterjee in Bangalore; Editing by Saumyadeb Chakrabarty