Oppenheimer today:
CALL’s 2Q Results Already Above Street Expectations; Suggests Strong EBITDA
Growth
magicJack issued a press release noting that 2Q12 analyst estimates have already been surpassed
during just the first two months of the quarter; per CALL, EPS may surpass $0.43 vs. consensus of $0.29.
The company did note it is too early to predict total revenue, but it should exceed $36M for the quarter and
the company continues to benefit from macro weakness. Through 1Q12, the company has repurchased
stock at an average price of around $11.00 per share, and the repurchase program successfully bought
back and retired certain common stock that had preferred-like rights from an investment when the
company was private. The company estimates it can reduce the number of outstanding ordinary shares to
18-19M within a year while still maintaining $40-60M in cash and cash equivalents. CALL is now guiding
EPS of $1.25-1.70 vs. prior guidance of $1.25-1.50 and FactSet consensus of $1.29. In our view, the
strong start to 2Q is fairly impressive given there should be some offsetting below-the-line pressures
in the company’s quarterly results, which suggests EBITDA is on trajectory to come well above our/the
Street’s expectations. |
