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

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8x8 (NAS: EGHT) is expected to report Q1 earnings on July 18. 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 expand 35.1% and EPS will expand 33.3%.

The average estimate for revenue is $25.0 million. On the bottom line, the average EPS estimate is $0.04.


Revenue details
Last quarter, 8x8 booked revenue of $24.2 million. GAAP reported sales were 33% higher than the prior-year quarter's $18.2 million.

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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 $0.04. GAAP EPS of $0.87 for Q4 were much higher than the prior-year quarter's $0.03 per share.

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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 68.4%, 100 basis points better than the prior-year quarter. Operating margin was 8.9%, 560 basis points worse than the prior-year quarter. Net margin was 263.9%, 25,280 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $106.5 million. The average EPS estimate is $0.19.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 294 members out of 305 rating the stock outperform, and 11 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give 8x8 a green thumbs-up, and one 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 $5.75.

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The article Will These Numbers From 8x8 Be Good Enough for You? originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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