Traders Buy Shares of These Companies Post Earnings
Vonage Holdings Corp. (NYSE:VG) reported its results for the fourth quarter. Reported a profit of $40 million ($1.48 per diluted share) in the quarter. Vonage Holdings Corp. had a net loss of $41.7 million or a loss 20 cents per share in the year earlier quarter. Revenue fell 0.7% to $216 million from the year earlier quarter. Vonage Holdings Corp. reported adjusted net income of 11 cents per share. By that measure, the company beat the mean estimate of 10 cents per share. Analysts were expecting revenue of $218 million.
Marc Lefar, Vonage Chief Executive Officer, said, “We are pleased to report record high annual net income, excluding adjustments and adjusted EBITDA along with free cash flow in excess of $100 million for the second consecutive year. For the quarter, we maintained adjusted EBITDA above $40 million, the fifth consecutive quarter, while net income, excluding adjustments grew 68 percent over the prior year.”
“Now that we have stabilized our core business and are generating meaningful cash flow, we will accelerate our investment in strategic growth initiatives during 2012. While reducing adjusted EBITDA in the short term, we believe this investment will fund growth in mobile and geographic expansion. Even with this increased level of funding, we expect to further strengthen our cash position during the year.”
“The time is right to increase our investment in organizational capacity and marketing. Early response to last week’s launch of Vonage Mobile has exceeded all of our expectations. The potential to rapidly build a global calling community with many millions of users is not unrealistic. And, we plan to invest in international opportunities as our partnerships and service offerings are brought to market.”
Competitors to Watch: IDT Corporation (NYSE:IDT), Microsoft (NASDAQ:MSFT), Sprint (NYSE:S), 8×8, Inc. (NASDAQ:EGHT), Verizon Communications Inc. (NYSE:VZ), AT&T Inc. (NYSE:T), CenturyLink, Inc. (NYSE:CTL), Consolidated Communications Hldgs. Inc (NASDAQ:CNSL), Warwick Valley Telephone Co. (NASDAQ:WWVY), Cbeyond, Inc. (NASDAQ:CBEY), and BCE Inc. (NYSE:BCE).
CenturyLink Inc. (NYSE:CTL) as the telecom services company saw profit fall in the fourth quarter. Net income for CenturyLink Inc. fell to $109 million (18 cents per share) vs. $225.2 million (74 cents per share) a year earlier. This is a decline of 51.6% from the year earlier quarter. Revenue rose more than twofold to $4.65 billion from the year earlier quarter. CenturyLink Inc. reported adjusted net income of 24 cents per share. By that measure, the company fell short of mean estimate of 61 cents per share. Analysts were expecting revenue of $4.62 billion.
“CenturyLink delivered solid financial results in the fourth quarter and exited 2011 with a strategic, diversified portfolio of assets,” Glen F. Post, III, chief executive officer and president, said. “The Company generated strong revenues for the quarter, driven by continued growth in strategic revenues and a slower decline in legacy revenues.”
Competitors to Watch: AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), Sprint Nextel Corporation (NYSE:S), PAETEC Holding Corp. (NASDAQ:PAET), Cbeyond, Inc. (NASDAQ:CBEY), Telephone & Data Systems, Inc. (NYSE:TDS), tw telecom inc. (NASDAQ:TWTC), and IDT Corporation (NYSE:IDT).
To contact the reporter on this story: Derek Hoffman at email@example.com
To contact the editor responsible for this story: Damien Hoffman at firstname.lastname@example.org