VCRA stock did a huge gap up open and then continued to head higher for most of the day on July 28, 2020.

Vocera Communications, Inc. (NYSE: VCRA), a recognized leader in clinical communication and workflow solutions, today reported total revenue of $47.3 million for the second quarter of 2020, compared to revenue of $44.8 million in the second quarter of 2019. Vocera reported Q2 adjusted EPS of 10c versus the consensus estimate of (6c). The company reported Q2 revenue of $47.3M versus the consensus estimate of $40.04M.

“I am proud of the job Vocera employees achieved during this global pandemic to remain focused and deliver outstanding results across the board,” said Brent Lang, Chairman and CEO of Vocera. “We fought through rapidly changing market dynamics and enhanced our market relevance. Our employees were inspired by our mission to improve the lives of patients and caregivers.”

Piper Jaffray upped its price target to $28, RBC Capital to $27, Wells Fargo to $28, and Craig Hallum upgraded the shares to Buy from Hold with a $30 price target. “Everything seemed to come together for Vocera” in Q2, Craig Hallum analyst Matt Hewitt tells investors in a research note. Further, Amazon (AMZN) is now more of a partner to the company than a threat, says Hewitt. The analyst notes that for many years, he received questions from investors about whether Amazon’s Alexa could pose a threat to Vocera. With the news that patients will soon be able to use Alexa, via the Amazon Echo, to communicate with caregivers who are using Vocera’s smart badge, Amazon is now more of a partner than a threat, contends Hewitt. Shares of Vocera are up 15%, or $3.49, to $26.92 in premarket trading.

Craig-Hallum analyst Matt Hewitt upgraded Vocera Communications to Buy from Hold with a price target of $30, up from $21. “Everything seemed to come together” for the company in Q2, Hewitt tells investors in a research note. Implementation delays proved not to be a headwind and Vocera posted a “monster” revenue and earnings beat, with strength across virtually every area of the business, says the analyst. He adds that while COVID-19 has helped drive greater interest in Vocera’s hands-free technology, the company’s performance during the quarter is largely a product of better execution.

Piper Sandler analyst Sean Wieland raised the firm’s price target on Vocera to $28 from $26 and reiterates an Overweight rating on the shares following last night’s Q2 results. The company reported a revenue, EBITDA and earnings beat driven by strong device growth and services segment margin leverage, Wieland tells investors in a research note. The analyst believes COVID-19 has “fortified Vocera’s value proposition,” with its badge an “integral component” of personal protective equipment. Pandemic preparedness and response spending will be a “durable tailwind” for Vocera and the company should return to mid-teens revenue growth in 2021 with improving profitability, says Wieland.

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