Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

MagicJack Sinks to Seven-Month Low After Cutting Forecast

Aug. 12 (Bloomberg) -- MagicJack VocalTec Ltd., whose main product is a device that connects to a computer or router to enable voice calls over the Internet, sank to the lowest since January after reducing its earnings estimates for the year.

Shares of MagicJack fell 5.8 percent to $12.29 in New York after earlier plunging as much as 15 percent. The Bloomberg Israel-US Equity Index slipped 0.7 percent.

MagicJack lowered its 2014 revenue forecast to about $120 million yesterday from as much as $163 million previously. The company, with headquarters in Netanya, Israel and West Palm Beach, Florida, reported sales of $29.5 million for the second quarter, falling short of the $32.1 million average of two analyst estimates compiled by Bloomberg.

“It was an ugly quarter and guidance was ugly,” Whitney Tilson, managing partner of New York-based hedge fund Kase Capital Management, said in an e-mailed response to questions. “I certainly expected better results than we’ve seen.”

Canaccord Genuity Inc. cut MagicJack from a buy to a hold yesterday and lowered its price target 36 percent to $14.

To contact the reporter on this story: Edith Waringa Kamau in New York at ekamau2@bloomberg.net

To contact the editors responsible for this story: Nikolaj Gammeltoft at ngammeltoft@bloomberg.net Marie-France Han

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.