We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ooma (OOMA) Stock Jumps 16%: Will It Continue to Soar?
Read MoreHide Full Article
Ooma (OOMA - Free Report) shares ended the last trading session 16% higher at $18.99. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.2% loss over the past four weeks.
OOMA’s rally is driven by impressive first-quarter fiscal 2022 results, wherein the company’s top and bottom lines surpassed the respective Zacks Consensus Estimate of $44 million and 7 cents. It delivered sales and earnings surprises of 3.1% and 57.1%, respectively. Markedly, the company witnessed 13.1% year-over-year growth in net sales with higher subscription and services revenues. Encouraged by significant business expansion efforts on the back of an optimistic outlook, robust demand for its services, along with diligent operational execution, is expected to drive Ooma’s financial results in the long run.
Price and Consensus
This internet phone service provider is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of -46.2%. Revenues are expected to be $44.9 million, up 8.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Ooma, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on OOMA going forward to see if this recent jump can turn into more strength down the road.
Image: Bigstock
Ooma (OOMA) Stock Jumps 16%: Will It Continue to Soar?
Ooma (OOMA - Free Report) shares ended the last trading session 16% higher at $18.99. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.2% loss over the past four weeks.
OOMA’s rally is driven by impressive first-quarter fiscal 2022 results, wherein the company’s top and bottom lines surpassed the respective Zacks Consensus Estimate of $44 million and 7 cents. It delivered sales and earnings surprises of 3.1% and 57.1%, respectively. Markedly, the company witnessed 13.1% year-over-year growth in net sales with higher subscription and services revenues. Encouraged by significant business expansion efforts on the back of an optimistic outlook, robust demand for its services, along with diligent operational execution, is expected to drive Ooma’s financial results in the long run.
Price and Consensus
This internet phone service provider is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of -46.2%. Revenues are expected to be $44.9 million, up 8.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Ooma, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on OOMA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>