Internet fax and messaging-services provider j2 Global
What analysts say:
- Buy, sell, or waffle? Of the 10 analysts following j2 Global, seven want to buy the stock, while three say "hold." In our Motley Fool CAPS investor database, 300 of our 83,000-plus users have weighed in on j2 Global, collectively giving the company a solid four-star rating.
- Revenue. Analysts' average estimate for third-quarter revenue lands at $56.8 million, 16% ahead of the same period last year.
- Earnings. The analyst pool, on average, is expecting earnings of $0.36 per share.
What management says:
j2 Global management continues to see upside ahead, but investors have been in a downside mood since last quarter's earnings. The stock has dropped nearly 40% since early November, when the company noted that some macroeconomic forces affected results. Co-president Scott Turicchi noted that the last period "was a difficult quarter for our credit-sensitive customers which resulted in their having lower usage levels versus prior periods."
Turicchi is saying essentially the same thing that AT&T
What management does:
Despite usage drops in particular customer segments, recent price increases rolled out across the entire customer base have propped up margins.
6/06 |
9/06 |
12/06 |
3/07 |
6/07 |
9/07 |
|
---|---|---|---|---|---|---|
Gross |
78.7% |
78.9% |
79.7% |
80% |
80.5% |
80.7% |
Operating |
40.3% |
38.2% |
36.5% |
37% |
37.7% |
38.5% |
Net |
33.4% |
28.8% |
29.3% |
29.6% |
30.1% |
31.2% |
One Fool says:
Maybe Verizon Communications
But j2 Global's offerings -- like alternative communication solutions such as Vonage
For more Foolishness: