NEW YORK (AP) -- Shares of MagicJack VocalTec Ltd. rose Monday after the company said its profit and revenue in April and May has already surpassed what analysts expected for the entire second quarter.
THE SPARK: The two analysts who reported estimates to FactSet expect MagicJack to report earnings of 29 cents per share on revenue of $35.9 million in the second quarter. The company said its profit could surpass 43 cents per share and revenue should be more than $36 million.
The company said it could earn as much as $1.70 per share in 2012. Previously MagicJack said its annual profit would be between $1.25 per share and $1.50 per share. On average, the two analysts expect $1.28 per share.
MagicJack also said it is changing its stock buyback program and will use "a more traditional approach to future share repurchases" rather than through an equity-options strategy that had given holders a chance to sell MagicJack shares to the company for a set price.
BIG PICTURE: The West Palm Beach, Fla., company makes devices that route low-cost phone calls over the Internet. It said the weak U.S. economy is good for its business and sales its newest product, MagicJack Plus, have been strong. It is also reporting increased renewals.
SHARE ACTION: MagicJack shares gained 76 cents, or 5.6 percent, to $14.40 in afternoon trading after rising as high as $15.58 earlier in the session. Shares of MagicJack had lost about a third of their value since mid-May.