Business communications software company 8x8 (NYSE:EGHT) will be reporting results tomorrow after market hours. Here's what to expect.
Last quarter 8x8 reported revenues of $187.6 million, up 26.4% year on year, in line with analyst expectations. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year guidance missing analysts' expectations. The company lost 43 enterprise customers paying more than $100,000 annually and ended up with a total of 1,277.
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This quarter analysts are expecting 8x8's revenue to grow 23% year on year to $186.5 million, improving on the 17.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.13%.
With 8x8 being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 2.7% over the last month. 8x8 is down 4.31% during the same time, and is heading into the earnings with analyst price target of $6.25, compared to share price of $3.55.
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The author has no position in any of the stocks mentioned.