The inventor of VoIP, magicJack VocalTec, continues to outperform the larger telephone companies like Verizon Communications. Year to date, VocalTec is by 61.05%. Verizon in contrast, has risen by 15.06% only.
VocalTec's recently released changes to its bullish earnings estimate from 48 to 52 cents per share on revenues of $37.5 to $ 38.5 million for the second quarter. In addition, guidance throughout the year has increased to a range of $1.50 and $1.80, compared with a previous forecast of $1.25 and $1.70. "It looks like sales of devices and renewals are strong, which bodes well for future growth," noted Tim Horan, an analyst for high tech industry stocks with Oppenheimer & Company.
Over the last 52 weeks of market action, VocalTec has jumped by 131.34%. On a quarterly basis, sales growth is the increase of 24.93%. For the same period, the earnings per share growth jumped over 400%. While the triple digit spikes in earnings per share growth like that can not be sustained, earnings per share growth for next year is projected at 22.68%. From growth, the ratio of forward price-to-income is estimated only at 11.70, far below the average of around 14 for a membership of 500 Index Standard & Poor.
Now trading around $22 a share, the mean analyst target price for VocalTec for next year's action in the market is $29.50. For the last weak market action, magicJack VocalTec is by 17.58%. Over the same time, Verizon was down by 0.60%. The trend is certainly the friend of VocalTec Trading shareholders is well above its 20-day, the 50-day and 200-day moving average.
The most recent analyst rating for VocalTec was by Northland Securities last July 11, reiterating its Outperform recommendation and increasing the target price from $27 a share to $29. The mean analyst rating for VocalTec is 1.50, which is bullish as 1 is a Strong Buy and 5 is a Strong Sell. Another bullish sign is the high level of insider ownership at almost 50%, which shows a keen ownership interest in the company by management.
VocalTec Communications is an Israeli Telecom equipment provider. The company began in 1989 by Alon Cohen and Lior Haramaty, invented and patented the very first Voice over IP audio transceiver. VocalTec’s Internet Phone is a VoIP application released in 1995. The software was invented by both Alon Cohen and Lior Haramaty, the two co-founder of VocalTec. On the base of live Internet phone invented by Alon Cohen and Lior Haramaty named the "Audio Transceiver", which managed dynamic jitter buffer that is critical for achieving the adaptive lower handling possible audio latency with packet loss, packet re-ordering, and sample rate of the transmitter receiver configuration. The first implementation of the "Audio Transceiver" was carried out by Elad Sion.