VocalTec Communications Earnings: Here’s Why Investors are Excited Now
VocalTec Communications Ltd. (NASDAQ:CALL) 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 14%.
VocalTec Communications Ltd. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.91 in the quarter versus EPS of $-0.41 in the year-earlier quarter.
Revenue: Rose 10.14% to $41.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: VocalTec Communications Ltd. reported adjusted EPS income of $0.91 per share. By that measure, the company beat the mean analyst estimate of $0.51. It beat the average revenue estimate of $39.01 million.
Quoting Management: “We are very pleased with these outstanding financial results,” said magicJack VocalTec President and CEO Gerald Vento. “For the year, we grew total revenue by 43% and had $43.6 million in operating income and $55.9 million in net income. We generated $65.0 million in free cash flow for the year, used $54.3 million of cash to repurchase 3.0 million shares. We ended the year with $38.3 million in cash and marketable securities and no debt.”
Key Stats (on next page)…
Revenue increased 1.5% from $40.79 million in the previous quarter. EPS decreased 4.21% from $0.95 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.33 to $0. For the current year, the average estimate has moved up from a profit of $1.91 to a profit of $1.94 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)