Vonage Holdings Corporation
) is set to release its second-quarter 2014 results before the
market opens on Jul 31, 2014.
In the last quarter, the company delivered a 50.00% earnings
surprise with an average beat of 41.67% in the last four quarters.
Let's see how things are shaping up for this announcement.
Factors to Considered This Quarter
Growing popularity of VoIP service in the SMB segment will
continue to drive Vonage's top line. Moreover, the acquisition of
Vocalocity might further boost the company's revenues going
However, stiff competition from large carriers, sluggish
international penetration along with weak subscriber growth will
weigh heavily on the company's growth prospects.
Our proven model does not conclusively show that Vonage is
likely to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive
and a Zacks Rank #1, #2 or #3 for this to happen.
Unfortunately, this is not the case here as elaborated below. Also,
the Sell-rated stocks (#4 and 5) should never be considered going
into an earnings announcement.
Both the Most Accurate estimate and the Zacks Consensus Estimate
are poised at 4 cents. Thus, Vonage has an Earnings ESP of
Vonage carries a Zacks Rank #3 (Hold) which when combined with a
0.00% ESP lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter.
TIM Participacoes S.A. (
) has an Earnings ESP of +16.67% and a Zacks Rank #1 (Strong
TELUS Corp. (
) has an earnings ESP of +1.85% and a Zacks Rank #2 (Buy).
BCE Inc. (
) has an earnings ESP of +1.28% and carries a Zacks Rank #3.
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VONAGE HOLDINGS (VG): Free Stock Analysis
TELUS CORP (TU): Free Stock Analysis Report
BCE INC (BCE): Free Stock Analysis Report
TIM PARTICP-ADR (TSU): Free Stock Analysis
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