Cloud communications provider 8x8 (NASDAQ:EGHT) will be announcing earnings results this Tuesday after market close. Here’s what investors should know.
8x8 beat analysts’ revenue expectations last quarter, reporting revenues of $185.2 million, up 4.6% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.
Is 8x8 a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting 8x8’s revenue to be flat year on year, slowing from the 1.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. 8x8 has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at 8x8’s peers in the productivity software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. RingCentral delivered year-on-year revenue growth of 5.9%, beating analysts’ expectations by 1%, and Microsoft reported revenues up 17.7%, topping estimates by 2.6%. RingCentral traded up 25.1% following the results while Microsoft was also up 15.7%.
Read our full analysis of RingCentral’s results here and Microsoft’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 2.7% on average over the last month. 8x8 is down 1% 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 $1.94).
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