Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

magicJack VocalTec Ltd. Soars 17% on Huge Demand

By Anders Bylund - Mar 12, 2014 at 5:37PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares of Internet-based calling services expert magicJack VocalTec soared on strong Q4 results paired with rosy forward guidance.

Image source: magicJack.

Following the release of fourth-quarter results, shares of magicJack VocalTec ( CALL ) soared as much as 28% higher in after-hours trading.

Analysts were looking for adjusted earnings around $0.41 per share on $36 million in fourth-quarter sales. Instead, magicJack delivered non-GAAP earnings of $0.69 per share and $38 million in total net revenues.

The large earnings surprise includes a $35 million one-time tax benefit, related to various accounting treatment changes in the U.S. and operating losses in Israel.

magicJack CEO Gerald Vento highlighted the strong demand for his company's digital telephony services, as evidenced by growth in magicJack service and app users. "The transformation of magicJack is well under way and we expect our updated branding and expanding distribution channels to pay dividends as the year progresses," he said in a prepared statement.

Looking ahead, magicJack put the midpoint of full-year 2014 revenue guidance at $160 million, comfortably ahead of Street projections at $142 million. Adjusted EBITDA profits should add up to roughly $50 million, again higher than Street estimates at $46 million.

The stock's brief after-hours spike to $22.47 set a new 52-week high. magicJack shares moderated to a more modest 17% extended gain, still exceeding the previous annual high.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

VocalTec Communications Ltd. Stock Quote
VocalTec Communications Ltd.
CALL

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
640%
 
S&P 500 Returns
139%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/03/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.