Why magicJack VocalTec (CALL) Stock Is Down Today

NEW YORK (TheStreet) -- magicJack VocalTec  (CALL) shares are tanking, down -10.3% to $11.71 in pre-market trading, on Tuesday after reporting a 10% second quarter decline in revenue to $29.5 million, short of analysts $32 million expectations.

Adjusted EBITDA for the quarter fell 49% from the previous year to $7 million.

The company reported a profit of 31 cents per diluted share that fell in line with analysts expectations for the quarter.  

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TheStreet Ratings team rates MAGICJACK VOCALTEC LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MAGICJACK VOCALTEC LTD (CALL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

CALL Chart CALL data by YCharts

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