Why Vocera Communications Shares Tumbled

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Vocera Communications (NYSE: VCRA  ) , a mobile communication solutions provider, dipped as much as 17% following the release of its fourth-quarter results and first-quarter forecast, and receiving an analyst downgrade.

So what: For the quarter, Vocera reported a 24% increase in revenue to $27 million as non-GAAP adjusted EBITDA more than doubled and EPS came in at $0.10 -- $0.03 above the Street's expectations. What crushed Vocera was its first-quarter guidance of $23 million to $25 million in revenue on breakeven earnings to a loss of $0.05. Wall Street was expecting $28.2 million in revenue and a profit of $0.08 for the upcoming quarter. In response to these results, research firm Sidoti downgraded Vocera to neutral from buy.

Now what: Despite Vocera's management team appearing confident that the company is heading in the correct direction, and management boosting its long-term margin target to 70%, it's a bit hard to understand why Vocera's guidance fell so short of Wall Street's estimates. Vocera's full-year guidance was in line with estimates, so perhaps it deserves a pass on the upcoming quarter, but the situation bears watching.

Craving more input? Start by adding Vocera Communications to your free and personalized Watchlist so you can keep up on the latest news with the company.

2013 and beyond
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2285646, ~/Articles/ArticleHandler.aspx, 8/31/2014 4:38:35 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 17,098.45 18.88 0.11%
S&P 500 2,003.37 6.63 0.33%
NASD 4,580.27 22.58 0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/29/2014 4:01 PM
VCRA $8.78 Down -0.01 -0.11%
VOCERA COMMUNICATI… CAPS Rating: *

Advertisement