8x8 (Nasdaq: EGHT ) is expected to report Q3 earnings on Jan. 24. 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 17.4% and EPS will increase 25.0%.
The average estimate for revenue is $27.3 million. On the bottom line, the average EPS estimate is $0.05.
Last quarter, 8x8 tallied revenue of $26.4 million. GAAP reported sales were 33% higher than the prior-year quarter's $19.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.05. GAAP EPS of $0.02 for Q2 were 100% higher than the prior-year quarter's $0.01 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 67.8%, 150 basis points better than the prior-year quarter. Operating margin was 10.5%, 610 basis points better than the prior-year quarter. Net margin was 6.6%, 240 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $107.3 million. The average EPS estimate is $0.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 328 members out of 341 rating the stock outperform, and 13 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give 8x8 a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 8x8 is outperform, with an average price target of $6.55.
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