The 10-second takeaway
For the quarter ended Sep. 30 (Q2), 8x8 met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins increased across the board.
8x8 reported revenue of $26.4 million. The six analysts polled by S&P Capital IQ predicted a top line of $26.2 million on the same basis. 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.
EPS came in at $0.05. The five earnings estimates compiled by S&P Capital IQ anticipated $0.05 per share. 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 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.
Next quarter's average estimate for revenue is $27.3 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $107.1 million. The average EPS estimate is $0.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 313 members out of 326 rating the stock outperform, and 13 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 $6.55.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.