8×8, Inc. (NYSE:EGHT) is scheduled to report Q2 earnings results on October 28, 2020.
The company is expected to report earnings of -$0.07/share on revenue of $126.3 million. The consensus earnings per share (EPS) of -$0.07/share is based on a poll of 18 analysts and represents a growth in eps of 55.2% over the same quarter last year, when the company reported earnings of -$0.16/share.
The revenue forecast of $126.3 million based on a poll of 17 analysts implies a year-over-year (YoY) growth in revenue of 15.3%. Last year the company reported $109.5 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $126.28 | $109.52 | 15.3% |
| EPS | -$0.07 | -$0.16 | −55.2% |
Earnings Call Trends
Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, missed 1 quarter, and met expectations 2 quarter.
What are your expectations from 8×8, Inc. for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q1, 2021 | -$0.12 | -$0.07 | 43.1% | Beat |
| Q4, 2020 | -$0.14 | -$0.12 | 16.2% | Beat |
| Q3, 2020 | -$0.17 | -$0.17 | 0% | Met |
| Q2, 2020 | -$0.17 | -$0.16 | 5.5% | Beat |
| Q1, 2020 | -$0.17 | -$0.14 | 19.8% | Beat |
| Q4, 2019 | -$0.08 | -$0.09 | 18.2% | Missed |
| Q3, 2019 | -$0.06 | -$0.06 | 0% | Met |
| Q2, 2019 | -$0.05 | -$0.04 | 17.0% | 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 June 30, 2020, the stock price reacted by falling −7.0%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| July 30, 2020 | $17.09 | $15.90 | −7.0% | Decline |
| May 12, 2020 | $19.87 | $15.03 | −24.4% | Decline |
| February 4, 2020 | $19.27 | $20.77 | 7.8% | Increase |
| October 30, 2019 | $19.41 | $19.32 | −0.5% | Decline |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −1.68, the model suggests that the company is likely an earnings manipulator. A value of −1.68 implies a 4.6% chance of earnings manipulation.
Fundamentals And Technical Analysis
8×8, Inc. is currently trading at $16.79/share, up 1.9% for the day. The company is trading at approximately 77.8% of its 52-week high of $21.57/share. The company’s stock price is up 5.6% since the last earnings report and up 2.2% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 60.84 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 −9.72 and a forward P/E multiple of −81.21.
8×8, Inc.’s current share price also implies a price-to-book (P/B) multiple of 9.78. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2021.Q1 |
| Period End Date | June 30, 2020 |
| Stock Price (Current) | $16.79 |
| P/E Ratio | −9.7x |
| P/E Ratio (Fwd) | −81.2x |
| PEG Ratio | 0.2 |
| Total Debt / Total Capital | 19.0% |
| Levered Free Cash Flow | -$118.9 million |
| EV / EBITDA | −13.7x |
8×8, Inc. is a small-cap stock with a market capitalization of $1.75 billion and a total enterprise value of $1.986 billion. The company operates in the Information Technology sector and the Software industry.
8×8, Inc. provides voice, video, chat, contact center, and enterprise-class application programmable interface (API) Software-as-a-Service solutions for small and mid-size businesses, mid-market and larger enterprises, government agencies, and other organizations worldwide. It offers unified communications, team collaboration, video conferencing, contact center, data and analytics, communication APIs, and other services. The company provides 8×8 Virtual Office, a self-contained and end-to-end solution that delivers high quality voice and unified communications-as-a-service; 8×8 Contact Center, a multi-channel cloud-based contact center solution; and 8×8 Meetings, a cloud-based video conferencing and collaboration solution that enables secure and continuous collaboration with borderless high definition video and audio communications from mobile and desktop devices. It also offers 8×8 Team Messaging, an integrated open team messaging platform, which facilitate modern modes of communication with support for direct messages, public and private team messaging rooms, short messaging service, presence, emojis, and ‘@’ mentions; 8×8 API, a set of global communications Platform-as-a-Service; and 8×8 Callstats Service, an analytics offering designed for real-time analytical responsiveness at scale. The company integrates its services with third-party applications and platforms, including enterprise resource planning, customer relations management, human capital management, and other proprietary application suites. It markets its services to end users through search engine marketing and optimization, third-party lead generation sources, industry conferences, trade shows, Webinars, and digital advertising channels, as well as direct sales organization. 8×8, Inc. was founded in 1987 and is headquartered in Campbell, California.
