Earnings To Watch: Bandwidth (BAND) Reports Q3 Results Tomorrow
Communications platform as a service company Bandwidth (NASDAQ: BAND) will be announcing earnings results tomorrow after market close. Here's what to expect.
Last quarter Bandwidth reported revenues of $145.9 million, up 6.88% year on year, beating analyst revenue expectations by 3.55%. It was a good quarter for the company, with a decent beat of analysts' revenue estimates but its net revenue retention rate in jeopardy.
Is Bandwidth buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Bandwidth's revenue to grow 0.51% year on year to $149.1 million, slowing down from the 13.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.54%.
Looking at Bandwidth's peers in the software development segment, only F5 Networks has so far reported results, delivering top-line growth of 0.99% year on year, and beating analyst estimates by 0.67%. The stock traded down 2.2% on the results.
Read our full analysis of F5 Networks's earnings results here.
Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022, and while some of the software development stocks have fared somewhat better, they have not been spared, with share price declining 4.45% over the last month. Bandwidth is down 3.02% during the same time, and is heading into the earnings with analyst price target of $21.4, compared to share price of $10.61.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
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The author has no position in any of the stocks mentioned.
