What happened

Last month, RingCentral (NYSE:RNG) stock popped 23.6%, according to data from S&P Global Market Intelligence. The S&P 500 returned 1.4% in July. 

Shares of the San Francisco Bay area-based provider of enterprise communications, collaboration, and contact-center solutions are up a whopping 69.6% in 2019, versus the broader market's 17.8% return.

Various images of people using technology to communicate and collaborate with a city in background.

Image source: Getty Images.

So what

We can attribute RingCentral stock's robust July performance in part to a continuation of its upward momentum that been driven by the company posting a long string of better-than-expected quarterly earnings results. 

There was also a specific July catalyst for the stock's rise: RingCentral's release of its second-quarter report, which included an increase in full-year 2019 guidance. On July 30, shares popped 11.1% following the release. In Q2, the company's revenue rose 34% year over year to $215.2 million, its GAAP (generally accepted accounting principles) net loss widened 10% to $0.11, and its adjusted earnings per share (EPS) increased 11% to $0.21, handily beating Wall Street's $0.16 consensus estimate. 

RNG Chart

Data by YCharts.

Here's the 2019 stock performance picture:

RNG Chart

Data by YCharts.

Now what

For 2019, RingCentral now expects revenue between $874 to $877 million, which at the midpoint represents growth of 30% year over year. Its prior outlook was for revenue of $862 to $866 million. The company guided for 2019 adjusted EPS of $0.77 to $0.79, approximately in line with 2018's adjusted EPS of $0.77. It previously expected adjusted EPS of $0.71 to $0.75.

Investors can almost surely count on 2019 adjusted EPS coming in higher than the company's outlook, as RingCentral routinely issues quite conservative guidance.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.