Will Higher Revenues Drive Vocera's (VCRA) Q4 Earnings?
Zacks Investment Research | Feb 05, 2019 06:11AM ET
Vocera Communications, Inc. (NYSE:VCRA) is scheduled to report fourth-quarter 2018 results after the closing bell on Feb 7. In the last reported quarter, the company delivered a positive earnings surprise of 90.9%. Notably, Vocera surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters, the average beat being 125.8%.
For the fourth quarter, the company is likely to report higher revenues on a year-over-year basis, supported by healthy growth trajectory. Whether this could result in an earnings beat remains to be seen.
Factors to Consider
With the right combination of solutions that effectively solve healthcare communication and workflow challenges to create an ideal healing and working environment, Vocera has emerged as one of the leading players in its domain. The company offers an all-inclusive digital platform for hands-free communication via secure text messaging, alert and alarm management.
Leveraging a patent-protected, enterprise-class server software, this integrated communications system provides an advanced clinical rules engine that simultaneously unifies data from multiple sources and prioritizes notifications and sends messages to the right care team members. This, in turn, augments clinical workflow by enabling the interoperability of the solution with a significant number of clinical and operational systems used in hospitals today.
Vocera appears poised to benefit from several mega trends in the healthcare industry. These include a relentless pursuit to improve workforce productivity and reduce caregiver burnout, improvement in patient satisfaction and enhancement of patient throughput in order to sustain margin levels as volume and payer mix continue to erode.
The key drivers for growth are a healthy momentum in bookings and a strong pricing power while its wide swath of integrations continues to be another key differentiator. These integrations enable Vocera's platform to be deeply embedded within the hospital ecosystem and generate a recurring revenue stream. The software mix in revenues is gradually increasing, driven by both new customer shipments and cross-selling success.
With solid organic growth backed by continued strength in demand curve, Vocera is likely to record healthy top-line growth. The Zacks Consensus Estimate for total revenues for the quarter is pegged at $50 million. In the year-earlier quarter, it generated revenues of $46 million.
Earnings Whispers
Our proven model does not conclusively show that Vocera is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP Filter .
Vocera Communications, Inc. Price and EPS Surprise
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