The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Vonage Holdings missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted.
Gross margins grew, operating margins dropped, net margins shrank.
Vonage Holdings recorded revenue of $207.6 million. The one analyst polled by S&P Capital IQ wanted to see revenue of $211.3 million on the same basis. GAAP reported sales were 4.1% lower than the prior-year quarter's $216.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The two earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.06 for Q3 were 14% lower than the prior-year quarter's $0.07 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.4%, 70 basis points better than the prior-year quarter. Operating margin was 11.0%, 170 basis points worse than the prior-year quarter. Net margin was 6.4%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $211.0 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $850.1 million. The average EPS estimate is $0.29.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 509 members out of 1,567 rating the stock outperform, and 1,058 members rating it underperform. Among 411 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 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.
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