The 10-second takeaway
For the quarter ended June 30 (Q1), 8x8 met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins expanded, and net margins grew.
8x8 notched revenue of $25.3 million. The six analysts polled by S&P Capital IQ hoped for revenue of $25.0 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $18.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.05. The five earnings estimates compiled by S&P Capital IQ averaged $0.04 per share. GAAP EPS of $0.12 for Q1 were 300% 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.
For the quarter, gross margin was 66.8%, 30 basis points worse than the prior-year quarter. Operating margin was 9.6%, 90 basis points better than the prior-year quarter. Net margin was 34.1%, 2,360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $26.0 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $106.4 million. The average EPS estimate is $0.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 293 members rating the stock outperform and 11 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 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 $6.19.
New mobile devices and services are changing the game and potential profitability in the telecom industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does 8x8 fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add 8x8 to My Watchlist.