magicJack VocalTec Catches Analysts Sleeping Again

Seth Jayson, The Motley Fool
Updated

magicJack VocalTec (NAS: CALL) reported earnings on Aug. 8. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), magicJack VocalTec beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.


Margins expanded across the board.

Revenue details
 magicJack VocalTec reported revenue of $38.6 million. The one analyst polled by S&P Capital IQ expected to see sales of $38.0 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $28.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.51. The one earnings estimate compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS of $0.50 for Q2 were 257% higher than the prior-year quarter's $0.14 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 60.9%, 290 basis points better than the prior-year quarter. Operating margin was 26.8%, 1,820 basis points better than the prior-year quarter. Net margin was 26.6%, 1,560 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $38.4 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $153.6 million. The average EPS estimate is $1.51.

Investor sentiment
 The stock has a one-star rating (out of five) at Motley Fool CAPS, with 30 members out of 61 rating the stock outperform, and 31 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give magicJack VocalTec a green thumbs-up, and 18 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on magicJack VocalTec is buy, with an average price target of $28.50.

The article magicJack VocalTec Catches Analysts Sleeping Again originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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