Office and call centre communications software provider RingCentral (NYSE:RNG) will be reporting results tomorrow after the bell. Here’s what to expect.
RingCentral beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $608.8 million, up 9.1% year on year. It was a satisfactory quarter for the company, with full-year EPS guidance slightly topping analysts’ expectations but annual recurring revenue in line with analysts’ estimates.
Is RingCentral a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting RingCentral’s revenue to grow 7.2% year on year to $612.4 million, slowing from the 8.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.97 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RingCentral has missed Wall Street’s revenue estimates twice over the last two years.
Looking at RingCentral’s peers in the productivity software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. 8x8’s revenues decreased 1.2% year on year, meeting analysts’ expectations, and Atlassian reported revenues up 21.4%, topping estimates by 3.4%. 8x8 traded down 5.9% following the results while Atlassian was up 15.2%.
Read our full analysis of 8x8’s results here and Atlassian’s results here.
There has been positive sentiment among investors in the productivity software segment, with share prices up 5.4% on average over the last month. RingCentral is down 1.4% during the same time and is heading into earnings with an average analyst price target of $41.95 (compared to the current share price of $33.80).
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