RingCentral (RNG) Reports Q4: Everything You Need To Know Ahead Of Earnings
Office and call centre communications software provider RingCentral (NYSE:RNG) will be reporting earnings tomorrow after market hours. Here's what you need to know.
Last quarter RingCentral reported revenues of $558.2 million, up 9.7% year on year, in line with analyst expectations. It was a mixed quarter for the company, with adjusted EBIT and EPS exceeding analysts' estimates, driven by better-than-expected subscription revenue and cost efficiencies. Furthermore, it raised its full-year adjusted EBIT and free cash flow guidance.
Is RingCentral buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting RingCentral's revenue to grow 8.7% year on year to $570.4 million, slowing down from the 17% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.82 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.2%.
Looking at RingCentral's peers in the productivity software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. 8x8's revenues decreased 1.8% year on year, missing analyst estimates by 1.3% and Appian reported revenues up 15.5% year on year, exceeding estimates by 3.2%. 8x8 traded down 3% on the results, and Appian was up 10.9%.
Read our full analysis of 8x8's results here and Appian's results here.
There has been positive sentiment among investors in the productivity software segment, with the stocks up on average 2.9% over the last month. RingCentral is down 13.3% during the same time, and is heading into the earnings with analyst price target of $41.2, compared to share price of $30.6.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
