Reuters: Global Markets: MagicJack raises outlook on strong sales, shares jump

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MagicJack raises outlook on strong sales, shares jump Jul 10th 2012, 12:32 Tue Jul 10, 2012 8:32am EDT (Reuters) - Israel's MagicJack Vocaltec Ltd (CALL.O), which provides internet-based telephone services, raised its estimates for the second quarter and the full year, prompted by strong sales of a new device that can directly connect to a home phone to make unlimited calls. The company's shares rose more than 15 percent in premarket trading on Tuesday. MagicJack Plus -- the company's newest offering -- can be directly connected to a home phone without the need to be attached to a computer to make calls. Earlier models needed a computer to make calls. The company now expects a second-quarter profit of between 48 cents and 52 cents per share. It had, a month ago, said its second-quarter profit is likely to exceed 43 cents. Analysts expect earnings of 36 cents per share, according to Thomson Reuters I/B/E/S. The company also updated its revenue estimate for the quarter to between $37.5 million and $38.5 million. Last month, it had said second-quarter revenue was likely to exceed $36 million. Analysts estimate a revenue of $35.9 million in the quarter. MagicJack also raised its full-year earnings forecast to between $1.50 and $1.80 per share from the earlier $1.25 to $1.70 per share. The company is expected to report a full-year profit of $1.36 per share, according to the average estimate from two analysts. MagicJack is set to launch new products during the third and fourth quarters, including a Wifi version of its application. The company's shares closed at $18.71 on Monday on the Nasdaq. They were up at $20.99 in premarket trade on Tuesday. (Reporting by Shubham Singhal in Bangalore; Editing by Sreejiraj Eluvangal) Link this Share this Digg this Email Reprints

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