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Unveiling Ooma (OOMA) Q4 Outlook: Wall Street Estimates for Key Metrics

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Wall Street analysts expect Ooma (OOMA - Free Report) to post quarterly earnings of $0.16 per share in its upcoming report, which indicates a year-over-year increase of 23.1%. Revenues are expected to be $64.7 million, up 4.9% from the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

With that in mind, let's delve into the average projections of some Ooma metrics that are commonly tracked and projected by analysts on Wall Street.

The average prediction of analysts places 'Revenue- Product and other' at $4.56 million. The estimate indicates a year-over-year change of +22.9%.

It is projected by analysts that the 'Revenue- Subscription and services' will reach $60.16 million. The estimate points to a change of +3.8% from the year-ago quarter.

Analysts forecast 'Gross Margin- Subscription and services' to reach 70.6%. Compared to the current estimate, the company reported 72% in the same quarter of the previous year.

View all Key Company Metrics for Ooma here>>>

Shares of Ooma have demonstrated returns of -1.8% over the past month compared to the Zacks S&P 500 composite's -2.2% change. With a Zacks Rank #3 (Hold), OOMA is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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