Business communications software company 8x8 (NYSE: EGHT) will be reporting earnings tomorrow after market close. Here’s what you need to know.
8x8 met analysts’ revenue expectations last quarter, reporting revenues of $178.9 million, down 1.2% year on year. It was a slower quarter for the company, with a slight miss of analysts’ billings estimates.
Is 8x8 a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting 8x8’s revenue to be flat year on year at $177.9 million, improving from the 2.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 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 four times over the last two years.
Looking at 8x8’s peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Five9 delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 2.6%, and RingCentral reported revenues up 4.8%, in line with consensus estimates. Five9 traded down 1.1% following the results while RingCentral was up 3.9%.
Read our full analysis of Five9’s results here and RingCentral’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 22.9% on average over the last month. 8x8 is up 9.7% during the same time and is heading into earnings with an average analyst price target of $2.64 (compared to the current share price of $1.80).
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