Vonage Holdings Corp. Third Quarter Earnings Sneak Peek

Vonage Holdings Corp. (NYSE:VG) will unveil its latest earnings on Wednesday, October 31, 2012. Vonage Holdings is a provider of broadband Voice over Internet Protocol telephone services to residential and small office customers.

Vonage Holdings Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 7 cents per share, a decline of 30% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 20% versus last year to 32 cents.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of 9 cents per share against a mean estimate of profit of 7 cents, and the quarter before, the company exceeded forecasts by one cent with net income of 8 cents versus a mean estimate of profit of 7 cents.

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A Look Back: In the second quarter, the company swung to a loss of $3.3 million (one cent a share) from a profit of $21.7 million (9 cents) a year earlier, but beat analyst expectations. Revenue fell 2.9% to $211.9 million from $218.3 million.

Stock Price Performance: Between August 1, 2012 and October 25, 2012, the stock price rose 22 cents (11%), from $2 to $2.22. The stock price saw one of its best stretches over the last year between September 4, 2012 and September 17, 2012, when shares rose for 10 straight days, increasing 17.5% (+37 cents) over that span. It saw one of its worst periods between July 19, 2012 and July 27, 2012 when shares fell for seven straight days, dropping 12.7% (-24 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $211.3 million in revenue this quarter, a decline of 2.4% from the year-ago quarter. Analysts are forecasting total revenue of $850.1 million for the year, a decline of 2.3% from last year’s revenue of $870.3 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 0.9% in the fourth quarter of the last fiscal year and 1.8% in first quarter before falling again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.79 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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