Vocera Communications, Inc. (VCRA): Excellent Beat and Raise. PT increases to 18 - Leerink

Leerink Partners analyst, David Larsen, reiterated his Outperform rating on shares ofVocera Communications (NYSE: VCRA) and raised his price target to $18.00 (from $16.00). VCRA reported 2Q:16 revenue of $31.2M (+22% y/y) well ahead of guidance (of $26.5 - 28.5M) and consensus of $28.0M/$27.9M. Software revenue increased +53% y/y. 2016 guidance was raised due to strong bookings and backlog levels. VCRA reported an adjusted EBITDA of $1.0M in the quarter, ahead of expectations ($0.1M), and adjusted EPS of $0.02 were also ahead of consensus of +0.01.

VCRA noted on the call that they were gaining traction across all business lines, for both expansions and new customers. VCRA had a number of new customer wins in the quarter and is seeing traction in their VA and DOD businesses. New customers in Dubai, Canada, and Northern Ireland were cited as good wins, with traction in the Middle East in 2Q; international revenue was up about 30% y/y (10% of the overall mix) with management mentioning that there is plenty of room for growth in most customers (~30% penetration). Backlog continues to be up substantially on a y/y basis and was at a record level for 2Q.

For an analyst ratings summary and ratings history on Vocera Communications click here. For more ratings news on Vocera Communications click here.

Shares of Vocera Communications closed at $13.57 yesterday.

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