NEW YORK (TheStreet) -- Shares of Vonage (VG - Get Report) were gaining 10.7% to $6.94 with heavy trading volume on Wednesday after the telecommunications company beat analysts' estimates for revenue in the third quarter.
Before the market opened, Vonage reported revenue of $223.36 million for the third quarter, a 0.7% increase from the year-ago quarter, which beat analysts' estimates of $221.26 million for the quarter. The company reported earnings of 6 cents a share for the quarter, in line with analysts' estimates.
"Our strong financial and operational results reflect the continued execution of our strategy to drive organic and inorganic growth in Vonage Business while taking disciplined actions to release the inherent profitability in Consumer Services," CEO Alan Masarek said in a statement. "The third quarter marks our third consecutive quarter of consolidated revenue growth, driven by our strong revenue growth in Vonage Business."
The company ended the third quarter with 514,000 business seats, up from 242,000 in the year-ago quarter, and 2 million consumer subscribers.
Vonage said it expects to report revenue of $891 million to $895 million for full year 2015, above analysts' estimates of $888 million in revenue for the year.
About 3.5 million shares of Vonage were traded by 12:21 p.m. Wednesday, above the company's average trading volume of about 1.9 million shares a day.
TheStreet Ratings team rates VONAGE HOLDINGS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate VONAGE HOLDINGS CORP (VG) a BUY. This is driven by a few notable 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 compelling growth in net income, revenue growth, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
You can view the full analysis from the report here: VG