Stock Story -
Business communications software company 8x8 (NYSE:EGHT) will be reporting earnings tomorrow after market hours. Here's what you need to know.
8x8 met analysts' revenue expectations last quarter, reporting revenues of $179.4 million, down 2.8% year on year. It was a weak quarter for the company, with a miss of analysts' ARR (annual recurring revenue) estimates and full-year revenue guidance missing analysts' expectations.
Is 8x8 a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting 8x8's revenue to decline 2.4% year on year to $178.8 million, in line with the 2.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.
The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. RingCentral (NYSE:RNG) delivered year-on-year revenue growth of 9.9%, beating analysts' expectations by 1.1%, and Pegasystems (NASDAQ:PEGA) reported revenues up 17.7%, topping estimates by 8.1%. RingCentral traded up 5.4% following the results while Pegasystems was also up 12.7%.
Read the full analysis of RingCentral's and Pegasystems's results on StockStory.
Growth stocks have been quite volatile since the start of 2024, and while some of the productivity software stocks have fared somewhat better, they have not been spared, with share prices down 6% on average over the last month. 8x8 is up 11.4% during the same time and is heading into earnings with an average analyst price target of $3.8 (compared to the current share price of $2.64).
