The 10-second takeaway
For the quarter ended Dec. 31 (Q3), 8x8 beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and earnings per share expanded significantly.
Gross margins shrank, operating margins dropped, net margins increased.
8x8 reported revenue of $23 million. The three analysts polled by S&P Capital IQ wanted to see sales of $22 million. Sales were 31% higher than the prior-year quarter's $18 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.04. The one earnings estimate compiled by S&P Capital IQ anticipated $0.03 per share. GAAP EPS of $0.04 for Q3 were 100% higher than the prior-year quarter's $0.02 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 67.9%, 30 basis points worse than the prior-year quarter. Operating margin was 11.0%, 50 basis points worse than the prior-year quarter. Net margin was 11.1%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $23 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $82 million. The average EPS estimate is $0.12.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 266 members out of 275 rating the stock outperform, and 10 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 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 buy, with an average price target of $5.58.
New mobile devices and services are changing the game and potential profitability in the wireless industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. 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.