Vonage Second Quarter Earnings Sneak Peek

Vonage Holdings Corp. (NYSE:VG) will unveil its latest earnings tomorrow, Wednesday, August 1, 2012. Vonage Holdings is a provider of broadband Voice over Internet Protocol telephone services to residential and small office customers.

Vonage Holdings Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 7 cents per share, a decline of 30% from the company’s actual earnings in the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 27.5% compared to last year’s 29 cents.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at profit of 8 cents per share against a mean estimate of net income of 7 cents. The company fell in line with estimates in the fourth quarter of the last fiscal year.

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A Look Back: In the first quarter, profit fell 34.1% to $13.9 million (6 cents a share) from $21.1 million (9 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 1.8% to $215.9 million from $219.8 million.

Stock Price Performance: Between June 27, 2012 and July 30, 2012, the stock price dropped 16 cents (-8.38%), from $1.91 to $1.73. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 20, 2012, when shares rose for eight straight days, increasing 16.7% (+28 cents) over that span. It saw one of its worst periods between May 1, 2012 and May 9, 2012 when shares fell for seven straight days, dropping 13.2% (-27 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $212.1 million in revenue this quarter, a decline of 2.9% from the year-ago quarter. Analysts are forecasting total revenue of $845.4 million for the year, a decline of 2.9% from last year’s revenue of $870.3 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 0.9% in the fourth quarter of the last fiscal year and dropped again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.65 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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