Business communications software company 8x8 (NYSE:EGHT) will be reporting earnings tomorrow afternoon. Here’s what to look for.
8x8 met analysts’ revenue expectations last quarter, reporting revenues of $178.1 million, down 2.8% year on year. It was a softer quarter for the company, with underwhelming revenue guidance for the next quarter and a 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 decline 3.6% year on year to $178.3 million, a further deceleration from the 1.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 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 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. Microsoft delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 1.6%, and ServiceNow reported revenues up 22.2%, topping estimates by 1.9%. Microsoft traded down 6.3% following the results while ServiceNow was up 5.4%.
Read our full analysis of Microsoft’s results here and ServiceNow’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 6.4% on average over the last month. 8x8 is up 11.1% during the same time and is heading into earnings with an average analyst price target of $2.98 (compared to the current share price of $2.20).
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