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Will These Numbers From 8x8 Be Good Enough for You?

8x8 (Nasdaq: EGHT  ) is expected to report Q1 earnings on July 18. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict 8x8's revenues will expand 35.1% and EPS will expand 33.3%.

The average estimate for revenue is $25.0 million. On the bottom line, the average EPS estimate is $0.04.

Revenue details
Last quarter, 8x8 booked revenue of $24.2 million. GAAP reported sales were 33% higher than the prior-year quarter's $18.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.04. GAAP EPS of $0.87 for Q4 were much higher than the prior-year quarter's $0.03 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 68.4%, 100 basis points better than the prior-year quarter. Operating margin was 8.9%, 560 basis points worse than the prior-year quarter. Net margin was 263.9%, 25,280 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $106.5 million. The average EPS estimate is $0.19.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 294 members out of 305 rating the stock outperform, and 11 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give 8x8 a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 8x8 is buy, with an average price target of $5.75.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (2)

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  • Report this Comment On July 14, 2012, at 3:31 PM, vaderblue wrote:

    I totally agree and 8 x 8 will become an investors dream through 2016. The financials are great and the company will be reporting 7/18/2012.

    I am dead serious this stock will make serious money over the next four years. They certainly have there cost of sales under control and I love their cash position at this juncture. I will use Cramer's phrase " Buy, buy, buy.

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10/26/2016 4:00 PM
EGHT $15.00 Down -0.40 -2.60%
8x8 CAPS Rating: ****