8x8 Beats Up on Analysts Yet Again
8x8 (NAS: EGHT) reported earnings on Wednesday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), 8x8 met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
8x8 notched revenue of $24.2 million. The three analysts polled by S&P Capital IQ expected a top line of $24.0 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $18.2 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 $0.04. The three earnings estimates compiled by S&P Capital IQ averaged $0.03 per share. GAAP EPS of $0.87 for Q4 were much 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.
For the quarter, gross margin was 68.4%, 100 basis points better than the prior-year quarter. Operating margin was 8.9%, 120 basis points better than the prior-year quarter. Net margin was 263.9%, 25,280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $25 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $106.5 million. The average EPS estimate is $0.18.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 283 members rating the stock outperform and 11 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give 8x8 a green thumbs-up, and two 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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At the time this article was published 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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