Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why magicJack VocalTec Ltd. Shares Popped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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 magicJack VocalTec Ltd.  (NASDAQ: CALL  ) jumped 8% today after reporting better-than-expected earnings last night.

So what: The VOiP services provider crushed earnings estimates with an adjusted EPS of $0.75 against expectations of just $0.42. Its subscriber count grew 21% from the year before to 273,534, though net revenues fell 14% to $35.5 million. Investors also seem jazzed by magicJack's announcement that it has bought $13 million worth of shares from founder Daniel Borislow, which will give earnings per share a boost of about 5%. Furthermore, the company entered into an agreement with Borislow stipulating that he will no longer have any more involvement in the company's business or operations.

Now what: Borislow had relinquished the CEO post late last year in the face of massive short selling so his departure should only further encourage investors. While overall revenue fell year over year, magicJack did see a 34% increase from access rights renewals so some categories are growing strongly. Meanwhile, the subscriber growth seems to bode well for the company moving forward, and shares are dirt cheap at a P/E of just 4.5. I'd say this is one company you'll want to keep your eye on.

Got iPad?
The new iPad Mini Retina might be hard to come by this quarter, given all the reports of supply constraints. Well, we're going to be sure to get a few -- and give them away! That's right: For the first time ever, The Motley Fool is hosting a contest where you can win a free iPad Mini Retina. All you have to do is tell us why you love The Motley Fool by clicking here! We'll pick the three most Foolish submissions to receive a free iPad Mini with Retina display.

See full terms and conditions by clicking here

Read/Post Comments (0) | Recommend This Article (3)

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.

Compare Brokers

Fool Disclosure

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: 2725843, ~/Articles/ArticleHandler.aspx, 9/27/2016 1:15:16 PM

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 Moments ago Sponsored by:
DOW 18,227.21 132.38 0.73%
S&P 500 2,160.00 13.90 0.65%
NASD 5,298.19 40.70 0.77%

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

9/27/2016 12:56 PM
CALL $6.00 Up +0.06 +1.01%
VocalTec Communica… CAPS Rating: **