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Ooma (OOMA) to Report Q2 Earnings: What's in the Cards?

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Ooma, Inc. (OOMA - Free Report) is scheduled to report second-quarter fiscal 2021 (ended Jul 31, 2020) results on Aug 25, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 450%. Notably, Ooma has a trailing four-quarter earnings surprise of 228.2%, on average.

The Sunnyvale, CA-based communications solution provider is expected to have recorded higher revenues on a year-over-year basis, driven by Ooma Business and Ooma Residential services. Let’s discuss the factors that are likely to get reflected in the upcoming quarterly announcement.

During the quarter under review, Ooma’s highly customizable and scalable private label partner program was selected by MTA Solutions, a leading telecommunications provider in Alaska, to deliver a new unified communication service under its own brand name. Ooma is providing MTA with the flexibility to offer leading-edge UCaaS. The development is likely to have had a positive impact on Ooma’s fiscal second-quarter top line.

The Zacks Consensus Estimate for total revenues is pegged at $40 million that indicates growth of 8.1% from the year-ago quarter’s reported figure. Adjusted earnings per share are pegged at 7 cents, which calls for a surge of 275% from the prior-year quarter’s recorded figure.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Ooma this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Ooma’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 7 cents.

Ooma, Inc. Price and EPS Surprise

Ooma, Inc. Price and EPS Surprise

Ooma, Inc. price-eps-surprise | Ooma, Inc. Quote

Zacks Rank: Ooma carries a Zacks Rank #3, at present.

 

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Toll Brothers, Inc. (TOL - Free Report) is slated to release third-quarter fiscal 2020 results on Aug 25. It has an Earnings ESP of +5.57% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Hain Celestial Group, Inc. (HAIN - Free Report) is scheduled to release fourth-quarter fiscal 2020 results on Aug 25. The company has an Earnings ESP of +2.94% and a Zacks Rank #3.

Williams-Sonoma, Inc. (WSM - Free Report) has an Earnings ESP of +45.49% and carries a Zacks Rank of 2. The company is set to report second-quarter fiscal 2020 results on Aug 26.

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