The upcoming report from RingCentral (RNG) is expected to reveal quarterly earnings of $1.14 per share, indicating an increase of 16.3% compared to the year-ago period. Analysts forecast revenues of $642.29 million, representing an increase of 4.5% year over year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
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 usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain RingCentral metrics that are commonly tracked and forecasted by Wall Street analysts.
The average prediction of analysts places 'Revenues- Subscriptions' at $621.84 million. The estimate indicates a year-over-year change of +5.5%.
It is projected by analysts that the 'Revenues- Other' will reach $20.44 million. The estimate suggests a change of -17.7% year over year.
Analysts predict that the 'Annualized Exit Monthly Recurring Subscriptions (ARR)' will reach $2.62 billion. Compared to the present estimate, the company reported $2.49 billion in the same quarter last year.
The combined assessment of analysts suggests that 'Customer ARR by Size - Mid-Market and Enterprise' will likely reach $1.64 billion. The estimate is in contrast to the year-ago figure of $1.56 billion.
View all Key Company Metrics for RingCentral here>>>
RingCentral shares have witnessed a change of +14.8% in the past month, in contrast to the Zacks S&P 500 composite's -1.4% move. With a Zacks Rank #5 (Strong Sell), RNG is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Ringcentral, Inc. (RNG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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