Vonage Holdings Earnings: Here’s Why the Stock is Down Now

Vonage Holdings Corporation (NYSE:VG) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.30%.

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Vonage Holdings Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 25% to $0.06 in the quarter versus EPS of $0.08 in the year-earlier quarter.

Revenue: Decreased 3.2% to $209 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vonage Holdings Corporation reported adjusted EPS income of $0.06 per share. By that measure, the company missed the mean analyst estimate of $0.07. It missed the average revenue estimate of $222.38 million.

Quoting Management: Commenting on the quarter, Marc Lefar, Vonage Chief Executive Officer, said, “We again generated solid financial returns. We improved our operating margins as we continue to implement structural improvements to lower costs. In addition, our focus on the overall customer experience has resulted in strong churn performance. Churn declined by 30 basis points from the prior year and has been stable for four consecutive quarters. Although total customer additions to our international calling plans were flat, we continued to see strong sales growth through assisted selling in major retailers and community sales teams.”

Key Stats (on next page)…

Revenue decreased 2.2% from $213.71 million in the previous quarter. EPS decreased 40% from $0.10 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.06 to a profit $0.07. For the current year, the average estimate has moved up from a profit of $0.26 to a profit of $0.27 over the last ninety days.

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