Vonage Holdings Corp. Earnings: Profit Down
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.
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Vonage Holdings Corp. Earnings Cheat Sheet
Results: Net income for Vonage Holdings Corp. fell to $13.2 million (6 cents per share) vs. $16 million (7 cents per share) a year earlier. This is a decline of 17.6% from the year-earlier quarter.
Revenue: Fell 4.1% to $207.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Vonage Holdings Corp. fell short of the mean analyst estimate of 7 cents per share. It fell short of the average revenue estimate of $212.3 million.
Quoting Management: “We reported a solid third quarter marked by stability in our core business, resulting in the growth of our customer base and steady cash flow,” said Marc Lefar, Vonage Chief Executive Officer. “During the quarter, we launched several key services in support of our growth initiatives. These included a compelling new international plan for calls to the Philippines through our partnership with Globe; unlimited calling to mobile phones in Mexico; and, the addition of Vietnam and South Korea to our flagship Vonage World plan. In addition, we fielded technical trials of our innovative mobile roaming capability.”
For four consecutive quarters, revenue has fallen. Revenue declined 2.9% to $211.9 million in the second quarter. The figure fell 1.8% in the first quarter from the year earlier and dropped 0.9% in the fourth quarter of the last fiscal year from the year-ago quarter.
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by one cent.
The company reported a profit last quarter after being in the red the prior quarter. The company booked a net loss of $13.9 million, or 6 cents per share, in the first quarter.
Looking Forward: The average estimate for the fourth quarter is steady at 8 cents a share. For the fiscal year, the average estimate has been unchanged at 32 cents a share.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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