The 10-second takeaway
For the quarter ended June 30 (Q2), Vonage Holdings missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank significantly. GAAP earnings per share grew.
Gross margins grew, operating margins contracted, net margins grew.
Vonage Holdings reported revenue of $204.8 million. The one analyst polled by S&P Capital IQ anticipated a top line of $218.3 million on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $211.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.06. The one earnings estimate compiled by S&P Capital IQ forecast $0.04 per share. Non-GAAP EPS of $0.06 for Q2 were 33% lower than the prior-year quarter's $0.09 per share. GAAP EPS were $0.03 for Q2 versus -$0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 69.4%, 120 basis points better than the prior-year quarter. Operating margin was 6.8%, 390 basis points worse than the prior-year quarter. Net margin was 3.6%, 520 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $213.8 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $874.6 million. The average EPS estimate is $0.20.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 504 members out of 1,555 rating the stock outperform, and 1,051 members rating it underperform. Among 385 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give Vonage Holdings a green thumbs-up, and 295 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 $4.15.
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