Vonage Holdings Corp. Earnings: Profit Goes South
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. fell short of the mean analyst 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 fell short of estimates last quarter after being in line with expectations the quarter before with net income of 10 cents.
Revenue has fallen 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: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 7 cents per share, down from 10 cents ninety days ago. For the fiscal year, the average estimate has moved down from 41 cents a share to 28 cents over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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