Why 8x8, Inc. Stock Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of 8x8 (NASDAQ: EGHT  ) rose as much as 16% Thursday after the cloud-based contact center specialist announced inline fiscal first-quarter 2015 results.

So what: Quarterly revenue increased 30% year over year, to $37.9 million, which translated to adjusted net income of $3 million, or $0.03 per diluted share. Both figures were roughly in line with expectations, which called for earnings of $0.03 per share on slightly lower sales of $37.5 million.

In addition, 8x8 told investors they now expect fiscal 2015 revenue to grow by "at least 25%" over last year, with adjusted net income as a percentage of revenue in the "high-single digit range." Again, both figures are roughly in line what what Wall Street was modeling.

Now what: So why the pop? First, it helps that shares had fallen by around 30% during the previous three months going into yesterday's close, thanks largely to a mixed bag when 8x8 announced its fiscal fourth-quarter earnings in May. At the time, management expected revenue to grow "approximately 25%" in fiscal 2015, so -- without being too specific -- today's verbiage represents a slightly more optimistic tone. As it stands, though, I personally prefer watching this one from the sidelines for now.

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Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

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Related Tickers

9/2/2015 3:59 PM
EGHT $7.75 Up +0.13 +1.71%
8x8, Inc. CAPS Rating: ****