Cloud communications provider RingCentral (NYSE: RNG) will be reporting results this Monday after the bell. Here’s what investors should know.
RingCentral met analysts’ revenue expectations last quarter, reporting revenues of $620.4 million, up 4.6% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter meeting analysts’ expectations.
Is RingCentral a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting RingCentral’s revenue to grow 4.4% year on year to $635.6 million, slowing from the 9.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RingCentral has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.6% on average.
Looking at RingCentral’s peers in the productivity software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Pegasystems delivered year-on-year revenue growth of 17.3%, beating analysts’ expectations by 8.5%, and Microsoft reported revenues up 18.4%, topping estimates by 2.9%. Pegasystems traded up 15% following the results while Microsoft was down 3.1%.
Read our full analysis of Pegasystems’s results here and Microsoft’s results here.
Investors in the productivity software segment have had steady hands going into earnings, with share prices flat over the last month. RingCentral is up 7.5% during the same time and is heading into earnings with an average analyst price target of $33.53 (compared to the current share price of $30.12).
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