MagicJack Pops 15% on Q1 Guidance

Shares of MagicJack

are seeing much strength during Monday's trading session after the company announced expectations for the first quarter, which were better than analysts' expectations. GAAP revenue, net income and earnings per share for the first quarter 2012 are expected to be approximately $37.4 million, $7.8 million and $0.37 respectively, before any adjustments (including one-time, extraordinary or non-recurring items). These numbers are preliminary and may vary up or down by 3% and 10% for revenue and income respectively. Analysts were expecting revenues of $35.7 million. These numbers include a one-time positive adjustment of approximately $2.5 million realized upon implementation of billing rules for pre-purchased minutes. Excluding adjustments, the Company expects to earn approximately $0.26 per share compared to the average of the current analysts' estimates of $0.13 per share. If the Company used non-GAAP "cash" measurements like many other companies, EPS would be slightly higher. MagicJack also announced it expects to resume its buyback program. Currently, shares of MagicJack are trading about 13% higher at $23.48 per share.