MagicJack stock up 6% on higher earnings projection for Q1
Free VoIP provider magicJack VocalTec (Nasdaq: CALL) is anticipating reporting record revenue and income in the first quarter, news that pushed the stock some six percent higher in a pre-trading run-up to $22.03. MagicJack closed Friday at $20.81 and has traded between $9.49 and $28.22 over the past 52 weeks.
The company said it expects revenue to come in at $37.4 million, with net income of $7.8 million and EPS of 37 cents; excluding adjustments, it expects earnings per share of 26 cents. Analysts expected revenue of $35.67 million and earnings per share of 13 cents, said RTT News.
The company today also announced the appointment of long-time director Gerald T. Vento had been appointed chairman, and it said it would accelerate its share buyback program. In announcing its intent to accelerate its stock buyback program, magicJack said it currently has "absolutely no intention" of raising money.
"Management will also seek approval to increase the size of the buyback program by an additional $20 million," the company said. "We are in the strongest financial position ever."
Vento, meanwhile, has been a director of magicJack, and prior to that YMax Corporation, since 2008. Vento founded TeleCorp PCS in 1996 and later sold it to AT&T Wireless at a valuation of $5.7 billion in 2002.
The company said its earlier projections of annual revenue growth of 20 percent to 30 percent were on track, with expected earnings per share of $1.25 to $1.50.
MagicJack sees 'best ever' 30-day sales period, cancels planned share sale
MagicJack ups revenue projection; adds app for Apple iPad, iPhone
FCC weighs toughening 911 requirements for more VoIP services
MagicJack blocking VoIP calls to rural areas?
MagicJack under attack for 911 fees