Ooma, Inc. (NYSE:OOMA) is scheduled to report results for the third quarter ended October 31, 2019, after the market closes on Thursday, November 21, 2019. The company is expected to report earnings of -$0.05/share on revenue of $38.455 million. The consensus earnings per share (EPS) of -$0.05/share is based on a poll of 6 analysts. For the same quarter last year when the company reported earnings of -$0.03/share.
The revenue forecast of $38.455 million based on a poll of 6 analysts implies a year-over-year (YoY) growth of 17.9%. Last year the company reported $32.608 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $38.45 | $32.61 | 17.9% |
| EPS | -$0.05 | -$0.03 | NM |
Ahead of earnings, management announced that the company will be powering the new Omni business phone service offered by Sprint. The stock was up on the news this morning but fell into negative territory with the rest of the market.
Earnings Call Trends
Management has a perfect record over the last 8 tracked quarters of exceeding earnings guidance. What are your expectations from Ooma for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | -$0.06 | -$0.04 | NM | Beat |
| Q1, 2020 | -$0.05 | -$0.04 | NM | Beat |
| Q4, 2019 | -$0.05 | -$0.03 | NM | Beat |
| Q3, 2019 | -$0.06 | -$0.03 | NM | Beat |
| Q2, 2019 | -$0.06 | -$0.05 | NM | Beat |
| Q1, 2019 | -$0.05 | -$0.04 | NM | Beat |
| Q4, 2018 | -$0.04 | -$0.03 | NM | Beat |
| Q3, 2018 | -$0.04 | -$0.02 | NM | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending July 31, 2019, the stock price reacted by increasing by 7.7%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| 2019-08-27 | $12.07 | $13 | 7.7% | Increase |
| 2019-05-21 | $14.94 | $12.41 | -16.9% | Decline |
| 2019-03-05 | $16.26 | $16.04 | -1.4% | Decline |
| 2018-11-27 | $13.71 | $15.60 | 13.8% | Increase |
Fundamentals And Technical Analysis
Ooma is currently trading at $11.14/share, up 0.3% for the day. The company is trading at approximately 66.6% of its 52-week high of $16.72/share. The company’s stock price is down -7.7% since the last earnings report and down -6.1% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 58.72 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of -14.7x and a forward P/E multiple of -57.2x. Ooma’s current share price also implies a price-to-book (P/B) multiple of 8.0x. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Fiscal Period | FY2020.Q2 |
| Period End Date | July 31, 2019 |
| Stock Price (Current) | $11.14 |
| P/E Ratio | -14.7x |
| P/E Ratio (Fwd) | -57.2x |
| PEG Ratio | 1.7 |
| Total Debt to Capital (%) | 1.4% |
| Levered Free Cash Flow | -$12.279 million |
| Enterprise Value / EBITDA | -15.9x |
Source: Finbox
Company Profile: Ooma, Inc.
Ooma, Inc. is a micro-cap stock with a market capitalization of $234.4 million and a total enterprise value of $209.3 million. The company operates in the Communication Services sector and the Diversified Telecommunication Services industry.
Ooma, Inc. creates connected experiences for businesses and consumers in the United States, Canada, and internationally. The company’s smart cloud-based SaaS platform serves as a communications hub, which offers cloud-based communications solutions, smart security, and other connected services.
The company’s business and residential solutions deliver PureVoice high-definition voice quality, advanced functionality, and integration with mobile devices; and platform helps to create smart workplace and homes by offering communications, monitoring, security, automation, productivity, and networking infrastructure applications.
The company’s products and services include Ooma Office, a multi-user communications system that provides everything needed to manage communications in and out of the office for small businesses; Ooma Office Mobile HD app to make, receive, and transfer phone calls; and Ooma Enterprise, an unified-communications-as-a-service.
It also provides Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo Air, a solution that connects to the Internet wirelessly using the home’s Wi-Fi network and can be paired with mobile phones to answer incoming mobile calls from any phone in the home; and Ooma HD3 cordless handset. In addition, the company offers Ooma Premier Service, a suite of advanced calling features to enhance the capabilities of Ooma Telo; and Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings with iOS or Android device over a Wi-Fi or cellular data connection.
Further, it provides Ooma Smart Security, a security and monitoring platform; Ooma Smart Cam, an indoor/outdoor high-definition video security camera; and Talkatone mobile app.
The company offers its products through direct sales, retailers, distributors, and resellers, as well as online. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.
