Business communications software company 8x8 (NYSE: EGHT) will be reporting earnings tomorrow after market close. Here’s what to look for.
8x8 beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $181 million, down 2.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a slight miss of analysts’ annual recurring revenue 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 $179.3 million, in line with the 1.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 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 Q4 results, giving us a hint as to what we can expect. Microsoft delivered year-on-year revenue growth of 12.3%, beating analysts’ expectations by 1.1%, and ServiceNow reported revenues up 21.3%, in line with consensus estimates. Microsoft traded down 6.1% following the results while ServiceNow was also down 11.4%.
Read our full analysis of Microsoft’s results here and ServiceNow’s results here.
Investors in the productivity software segment have had steady hands going into earnings, with share prices flat over the last month. 8x8 is down 4.8% during the same time and is heading into earnings with an average analyst price target of $3.14 (compared to the current share price of $2.85).
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