Boston, MA 03/18/2014 (wallstreetpr) – MagicJack VocalTec Ltd (NASDAQ:CALL) is almost halfway through a restructuring effort that should, in the end, bring focus on wireless while completely changing its marketing, distribution and pricing. The company recently released its fourth quarter performance results which had a lot of key highlights.
For a turnaround stock, a lot of value is usually attached on the prospects while previous results offer tracking solution to the progress of the turnaround efforts. So then, has this stock been anywhere or done anything that can bring hope or encouragement about its future? The best way to answer this question is looking at the progress so far, analyst sentiments and what the management has to say about the business.
Turnaround progress
MagicJack VocalTec Ltd (NASDAQ:CALL) recently released fourth quarter performance in which it stated earnings beat Street expectations at $0.69 against $0.41. Revenue also topped Street view at $38.20 million against $35.93 million. However, looking back one year, we find that earnings this time around were down at $0.69 against $0.91. The same drop can be noted in revenue figure which fell 7.7 percent to the year ago revenue amount. Interestingly, on sequential basis, revenue was up 7 percent against the third quarter figure. A closer look at these performance numbers goes all the way to reveal that the turnaround, though not unfolding robustly, is happening in an attractive manner.
Analyst views
Several analysts have commented on the stock of MagicJack VocalTec Ltd (NASDAQ:CALL) of late. Equity experts at Canaccord Genuity, having looked at the turnaround progress, raised their price target on the stock to $24 from $17. The new price target comes as a 5.45 percent premium over the current price of the stock. The firm planted a “buy” rating on the stock.
Management sentiment
First, the management issued guidance for the current fiscal year that exceeds analyst consensus estimates. The company is looking forward to revenue in the range of $158 – $163 million, above consensus of $142. Revenue in 2013 was $143 million. Thus, it is clear that insiders who better understand the health and strength of the company’s turnaround are convinced that better things are still ahead. Perhaps this is better described by the compelling enrolment to the MagicJack VocalTec Ltd (NASDAQ:CALL)’s mobile app which now stands at 6.9 million, strongly up from 1.3 million in the December quarter.
