Cloud communications provider 8x8 (NASDAQ: EGHT) will be reporting earnings this Tuesday after market hours. Here’s what to expect.
8x8 beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $181.4 million, up 1.8% year on year. It was a slower quarter for the company, with revenue guidance for next quarter slightly missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.
Is 8x8 a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting 8x8’s revenue to decline 1.4% year on year to $178.5 million, in line with the 2.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 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. 8x8 has missed Wall Street’s revenue estimates five times over the last two years.
Looking at 8x8’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 fairly steady hands going into earnings, with share prices down 1% on average over the last month. 8x8 is down 9.8% during the same time and is heading into earnings with an average analyst price target of $2.50 (compared to the current share price of $1.84).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
