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Electronic payment technology provider Verifone reported a surprise Q3 loss on Thursday.
The company said it lost $71 million, or 63 cents a share, compared to a loss of $31.1 million, or 28 cents a share, during the year ago period.
Non-GAAP earnings were 36 cents a share with revenue of $467 million, down from $488 million a year ago. Wall Street was looking for earnings of 14 cents a share with revenue of $464 million.
Verifone said the loss was a result of restructuring and divestiture charges related to its China operations, and the spin of its Petro Media business. Verifone is also actively trying to sell its taxi business.
On the growth side, Verifone said it’s seeing increased adoption of its mobile POS products as more of its retail clients supplement existing terminals to improve the consumer checkout experience.
“In North America, our large market share and installed base with multi-line retailers, position us well to capture significant share of mPOS demand,” said Verifone CEO Paul Galant. “And as such, we are now on track to deliver more than 20 percent organic growth across our mobile product portfolio in fiscal year ’17.”
Verifone’s retail growth projection is backed up by new research from IHL Group, which suggests that U.S. retailers are opening 4,080 more stores in 2017 than they are closing and plan to open over 5,500 more in 2018.
As for Verifone’s current quarter, the company said it expects earnings of 43 cents a share with revenue between $470 million and $473 million. Analysts expect earnings of 46 cents a share on sales of $474 million in the fiscal fourth quarter.
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