8×8 Earnings: Here’s Why Investors are Not Happy Now

8×8 Inc. (NASDAQ:EGHT) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 8.41%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

8×8 Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 66.67% to $0.05 in the quarter versus EPS of $0.03 in the year-earlier quarter.

Revenue: Rose 18.6% to $28.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: 8×8 Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.06. It beat the average revenue estimate of $28.28 million.

Quoting Management: “I am pleased to report another solid year of record revenue growth and margin expansion,” said 8×8 Chairman & CEO Bryan Martin. “While the growth of our core business communications offerings to small businesses remained strong, increased interest from mid-market customers who are deploying these services in much larger, distributed environments further validated our efforts to move upmarket and our credibility as an enterprise-class cloud services provider. These accomplishments were heightened by new SaaS licensing partnerships with SoftBank and CoSentry, centered around our subscription-based virtualized cloud data services, as well as the formal launch of our services in Canada, phase one of our Global Reach initiative.”

Key Stats (on next page)…

Revenue increased 4.97% from $27.34 million in the previous quarter. EPS were the same at $0.05 as the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.06 and has not changed. For the current year, the average estimate is a profit of $0.20, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)