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RingCentral (RNG) to Report Q1 Earnings: What's in Store?
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RingCentral (RNG - Free Report) is set to release first-quarter 2020 results on May 6.
For the quarter, revenues are anticipated between $257 million and $259 million. The Zacks Consensus Estimate for revenues currently stands at $256.1 million, indicating growth of 27.1% from the year-ago quarter’s reported figure.
Moreover, earnings are expected between 18 cents and 19 cents per share. The consensus mark for earnings has stayed at 18 cents per share over the past 30 days, indicating 5.9% growth from the figure reported in the year-ago quarter.
Notably, the company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 16.3%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
RingCentral is a dominant name in the cloud-based Unified Communications as a Service (UCaaS) space. The company is benefiting from a continual shift to the cloud as well as the trend toward convergence in business communications. Moreover, the coronavirus-induced remote working trend is expected to have expanded its subscriber base in the to-be-reported quarter.
Notably, momentum in the mid-market and enterprise business (defined as Office subscribers that generate $25,000 or more in annual recurring revenues) drove the fourth-quarter top line, a trend that most likely continued in the first quarter on the back of a burgeoning RingCentral Office customer base due to work-from-home wave.
Moreover, a strong partner base that includes the likes of AT&T, Telus, BT, Atos and Altura is expected to have benefited the top line. Additionally, integrations with NetSuite, Salesforce and Microsoft Teams are likely to have strengthened RingCentral’s product offerings and effectiveness among enterprises, thereby driving its user base and subscription revenues.
Additionally, the company’s solid footprint among public sector enterprises and education space is noteworthy. During the quarter, RingCentral inked a new deal with The Educational Services Commission of New Jersey (ESCNJ), which serves more than 1,300 members in public agencies including educational institutions across the state of New Jersey.
Key Q1 Development
On Mar 31, RingCentral and Avaya announced the general availability of the much-anticipated Avaya Cloud Office by RingCentral solution.
What Our Model Says
Per the Zacks model, 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.
Ringcentral has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering from the same space as our model shows that these have the right mix of elements to beat on earnings this reporting cycle:
Shopify (SHOP - Free Report) has an Earnings ESP of +23.41% and is #2 Ranked.
Take Two Interactive (TTWO - Free Report) has an Earnings ESP of +13.24% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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RingCentral (RNG) to Report Q1 Earnings: What's in Store?
RingCentral (RNG - Free Report) is set to release first-quarter 2020 results on May 6.
For the quarter, revenues are anticipated between $257 million and $259 million. The Zacks Consensus Estimate for revenues currently stands at $256.1 million, indicating growth of 27.1% from the year-ago quarter’s reported figure.
Moreover, earnings are expected between 18 cents and 19 cents per share. The consensus mark for earnings has stayed at 18 cents per share over the past 30 days, indicating 5.9% growth from the figure reported in the year-ago quarter.
Notably, the company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 16.3%.
Ringcentral, Inc. Price and EPS Surprise
Ringcentral, Inc. price-eps-surprise | Ringcentral, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
RingCentral is a dominant name in the cloud-based Unified Communications as a Service (UCaaS) space. The company is benefiting from a continual shift to the cloud as well as the trend toward convergence in business communications. Moreover, the coronavirus-induced remote working trend is expected to have expanded its subscriber base in the to-be-reported quarter.
Notably, momentum in the mid-market and enterprise business (defined as Office subscribers that generate $25,000 or more in annual recurring revenues) drove the fourth-quarter top line, a trend that most likely continued in the first quarter on the back of a burgeoning RingCentral Office customer base due to work-from-home wave.
Moreover, a strong partner base that includes the likes of AT&T, Telus, BT, Atos and Altura is expected to have benefited the top line. Additionally, integrations with NetSuite, Salesforce and Microsoft Teams are likely to have strengthened RingCentral’s product offerings and effectiveness among enterprises, thereby driving its user base and subscription revenues.
Additionally, the company’s solid footprint among public sector enterprises and education space is noteworthy. During the quarter, RingCentral inked a new deal with The Educational Services Commission of New Jersey (ESCNJ), which serves more than 1,300 members in public agencies including educational institutions across the state of New Jersey.
Key Q1 Development
On Mar 31, RingCentral and Avaya announced the general availability of the much-anticipated Avaya Cloud Office by RingCentral solution.
What Our Model Says
Per the Zacks model, 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.
Ringcentral has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering from the same space as our model shows that these have the right mix of elements to beat on earnings this reporting cycle:
Wayfair (W - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify (SHOP - Free Report) has an Earnings ESP of +23.41% and is #2 Ranked.
Take Two Interactive (TTWO - Free Report) has an Earnings ESP of +13.24% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>