Vonage Holdings Earnings: Here’s Why Investors Like These Results

Vonage Holdings Corporation (NYSE:VG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 7%.

Vonage Holdings Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.10 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Decreased 0.92% to $213.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vonage Holdings Corporation reported adjusted EPS income of $0.10 per share. By that measure, the company beat the mean analyst estimate of $0.06. It beat the average revenue estimate of $212.41 million.

Quoting Management: Marc Lefar, Vonage Chief Executive Officer, commented, “We delivered strong fourth quarter financial results as we grew revenue and maintained adjusted EBITDA at third quarter levels, even as we increased our investment in growth initiatives. We attracted new customers to our international and domestic calling plans, although gains in these areas were offset by declines in other segments of our business.”

Key Stats (on next page)…

Revenue increased 2.95% from $207.58 million in the previous quarter. EPS increased 11.11% from $0.09 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.08 to a profit $0.06. For the current year, the average estimate has moved down from a profit of $0.30 to a profit of $0.26 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)