Shares of Vonage Holdings (NYSE: VG) gained 25.2% in November 2017, according to data from S&P Global Market Intelligence. The bulk of that rocket fuel came from a solid earnings report.
Continue Reading Below
The provider of digital communications services reported strong third-quarter results on Nov. 7. Earnings came in at $0.07 per share, down from $0.09 per share in the year-ago quarter and in line with analyst projections. On the top line, revenues grew 2% year over year to $253 million, while the Street was looking for a flat sales performance. Revenue guidance for the fourth quarter also landed slightly ahead of analyst estimates. The stock closed 8% higher the next day, triggering a steady climb throughout the rest of November.
Vonage CEO Alan Masarek underscored the strength of his company's business-grade services, whose quarterly revenues exceeded the consumer platform's for the first time in company history.
"Our results demonstrate that we're delivering on our strategic priorities, using our full suite of cloud communications services to deliver better business outcomes to our customers, and successfully transforming Vonage into a market leader in business cloud communications," Masarek said in a prepared statement.
The business division's sales rose 22% year over year, while the consumer operations declined by 13%. The company is shifting gears to a more profitable and less price-sensitive clientele, and Vonage investors have enjoyed a market-beating 77% return over the last two years.
10 stocks we like better than Vonage HoldingsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Vonage Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of December 4, 2017