Vonage Holdings Corp. Earnings Cheat Sheet: Beats Estimates with a Swing Up

Vonage Holdings Corp. (NYSE:VG) reported its results for the third quarter. Vonage Holdings is a provider of broadband Voice over Internet Protocol telephone services to residential and small office customers.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Vonage Holdings Corp Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $16 million (7 cents per diluted share) in the quarter. The diversified communication services company had a net loss of $55.4 million or a loss of 26 cents per share in the year earlier quarter.

Revenue: Rose 1.3% to $217 million from the year earlier quarter.

Actual vs. Wall St. Expectations: VG reported adjusted net income of 11 cents per share. By that measure, the company beat the mean estimate of 8 cents per share. Analysts were expecting revenue of $220.9 million.

Quoting Management: Marc Lefar, Vonage Chief Executive Officer, said, “We are pleased to report that we tripled quarterly net income from the same quarter last year, and for the fourth consecutive quarter generated EBITDA of at least $40 million. Our recently expanded distribution channels contributed to higher customer additions and increased acquisition efficiency. Although gross line additions increased, churn was slightly higher than expected due to the full year impact of the “no contract” policy. We expect improvements over the next few months as we will no longer experience the churn spike customarily associated with contract expirations. We anticipate stable to lower churn in the fourth quarter.”

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the first quarter, which saw a 3.6% decrease.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the second quarter, by one cent in the first quarter, and by 3 cents in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the fourth quarter have not changed from 10 cents. The average estimate for the fiscal year has remained at 34 cents per share.

Competitors to Watch: IDT Corporation (NYSE:IDT), Sprint (NYSE:S), Microsoft (NASDAQ:MSFT), 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).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)