8×8 Earnings: Here’s Why Investors Like These Results

8×8 Inc. (NASDAQ:EGHT) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.38%.

8×8 Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 20% to $0.06 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Rose 18.81% to $30 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: 8×8 Inc. reported adjusted EPS income of $0.06 per share. By that measure, the company missed the mean analyst estimate of $0.06. It beat the average revenue estimate of $29.57 million.

Quoting Management: “First and foremost, I am pleased to report that the 22% growth in business revenue we saw in the first quarter of fiscal 2014 has led to the achievement of another revenue milestone with the posting of $30 million in revenue for the quarter,” said 8×8 Chairman & CEO Bryan Martin. “In addition, our average monthly service revenue per business customer increased sequentially by $5 to a new high of $268, and business customers now generate 98% of total revenue.”

Key Stats (on next page)…

Revenue increased 4.71% from $28.65 million in the previous quarter. EPS increased 20% from $0.05 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.07 to a profit $0.06. For the current year, the average estimate has moved down from a profit of $0.28 to a profit of $0.26 over the last ninety days.

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

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