What To Expect From 8x8’s (EGHT) Q2 Earnings
Business communications software company 8x8 (NYSE:EGHT) will be reporting earnings tomorrow after market close. Here's what to look for.
Last quarter 8x8 reported revenues of $183.3 million, down 2.31% year on year, missing analyst expectations by 2.04%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.
Is 8x8 buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting 8x8's revenue to decline 2.02% year on year to $183.6 million, a further deceleration on the 23.6% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 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 missed Wall St's revenue estimates four times over the last two years.
Looking at 8x8's peers in the productivity software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. ServiceNow delivered top-line growth of 25% year on year, beating analyst estimates by 0.65%, and Pegasystems reported revenues up 23.6% year on year, exceeding estimates by 12.8%. ServiceNow traded up 5.9% on the results, and Pegasystems was up 1.2%.
Read our full analysis of ServiceNow's results here and Pegasystems's results here.
Technology stocks have been hit hard by fears of higher interest rates, and while some of the productivity software stocks have fared somewhat better, they have not been spared, with share price declining 8.09% over the last month. 8x8 is down 7.69% during the same time, and is heading into the earnings with analyst price target of $4.8, compared to share price of $2.4.
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The author has no position in any of the stocks mentioned.
