AudioCodes Earnings: Here’s Why Investors are Buying Shares Now

AudioCodes Ltd. (NASDAQ:AUDC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.73%.

AudioCodes Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.03 in the quarter versus EPS of $-0.04 in the year-earlier quarter.

Revenue: Rose 8.67% to $33.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AudioCodes Ltd. reported adjusted EPS income of $0.03 per share. By that measure, the company beat the mean analyst estimate of $0.02. It beat the average revenue estimate of $32.91 million.

Quoting Management: “We are pleased to report another quarter of growing revenues and improved financial performance. This is our fourth consecutive quarter of growth since July 2012 when we realigned operations in order to position our business for growth,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes. “In the second quarter of 2013 we experienced good momentum and success in our networking business which grew 8% over the previous quarter and 14% year-over-year. Our networking business now comprises approximately 86% of our total revenues. We are aligned with leading software and networking industry leaders through numerous partnerships. Accordingly, we are confident in our ability to sustain similar growth rates in our business as we move forward. Supporting this longer term potential is the solid multi-year growth in markets where we play a leading role, such as Unified Communications, Hosted Telephony, SIP Trunking and Contact Centers. In addition, the increased pace of transition from voice into cloud and hosted telephony applications opens opportunities for us in new two strategic directions.”

Key Stats (on next page)…

Revenue increased 4.43% from $32.27 million in the previous quarter. EPS increased 50% from $0.02 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.03 and has not changed. For the current year, the average estimate is a profit of $0.12, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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