Please ensure Javascript is enabled for purposes of website accessibility

Will These Numbers from 8x8 Be Good Enough for You?

By Seth Jayson - Updated Apr 7, 2017 at 12:17PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Checking expectations

8x8 (Nasdaq: EGHT) is expected to report Q2 earnings on Oct. 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 increase 32.0% and EPS will expand 150.0%.

The average estimate for revenue is $26.2 million. On the bottom line, the average EPS estimate is $0.05.

Revenue details
Last quarter, 8x8 reported revenue of $25.3 million. 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 details
Last quarter, non-GAAP EPS came in at $0.05. 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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $107.1 million. The average EPS estimate is $0.20.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 310 members out of 323 rating the stock outperform, and 13 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 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 $6.19.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

8x8, Inc. Stock Quote
8x8, Inc.
EGHT
$6.92 (1.02%) $0.07

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
322%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.