The 10-second takeaway
For the quarter ended Dec. 31 (Q3), 8x8 met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped.
Gross margins expanded, operating margins dropped, net margins shrank.
8x8 reported revenue of $27.3 million. The eight analysts polled by S&P Capital IQ foresaw sales of $27.3 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $23.3 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 seven earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS of $0.03 for Q3 were 25% lower than the prior-year quarter's $0.04 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 68.3%, 40 basis points better than the prior-year quarter. Operating margin was 10.1%, 90 basis points worse than the prior-year quarter. Net margin was 7.0%, 410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $28.4 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $107.3 million. The average EPS estimate is $0.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 325 members out of 338 rating the stock outperform, and 13 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 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 outperform, with an average price target of $7.87.
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