Vonage Holdings Corp. Earnings: Profit Down
Vonage Holdings Corp. (NYSE:VG) reported its results for the first 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 for the First Quarter
Results: Net income for Vonage Holdings Corp. fell to $13.9 million (6 cents per share) vs. $21.1 million (9 cents per share) a year earlier. This is a decline of 34.1% from the year-earlier quarter.
Revenue: Fell 1.8% to $215.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Vonage Holdings Corp. reported adjusted net income of 8 cents per share. By that measure, the company beat the mean estimate of 7 cents per share. Analysts were expecting revenue of $212.3 million.
Quoting Management: Marc Lefar, Vonage Chief Executive Officer, said, “Our financial results were consistent with previous guidance as we increased investment in our strategic growth initiatives. Our core business is stable and generated EBITDA which was in line with recent quarters.”
The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 10 cents per share.
Revenue has dropped in the past two quarters. In the fourth quarter of the last fiscal year, revenue declined 0.9% to $215.7 million from the year-earlier quarter.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 10 cents a share to 7 cents over the last ninety days. At 28 cents per share, the average estimate for the fiscal year has fallen from 41 cents ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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