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What Does Wall Street See for Vonage Holdings's Q3?

By Seth Jayson – Updated Apr 7, 2017 at 12:07PM

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Checking expectations

Vonage Holdings (NYSE: VG) is expected to report Q3 earnings on Oct. 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Vonage Holdings's revenues will decrease -2.4% and EPS will decrease -40.0%.

The average estimate for revenue is $211.3 million. On the bottom line, the average EPS estimate is $0.06.

Revenue details
Last quarter, Vonage Holdings tallied revenue of $211.9 million. GAAP reported sales were 2.9% lower than the prior-year quarter's $218.3 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.09. GAAP EPS were -$0.01 for Q2 versus $0.09 per share for the prior-year quarter.

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

Recent performance
For the preceding quarter, gross margin was 68.2%, 80 basis points worse than the prior-year quarter. Operating margin was 10.7%, 360 basis points worse than the prior-year quarter. Net margin was -1.6%, 1,160 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $850.1 million. The average EPS estimate is $0.29.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 509 members out of 1,566 rating the stock outperform, and 1,057 members rating it underperform. Among 405 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Vonage Holdings a green thumbs-up, and 339 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vonage Holdings is outperform, with an average price target of $3.00.

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 of Motley 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. 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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