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Market Overview

Earnings Preview for RingCentral


RingCentral (NYSE:RNG) unveils its next round of earnings this Tuesday, February 16. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

RingCentral EPS is expected to be around $0.27, according to sell-side analysts. Sales will likely be near $317.42 million. In the same quarter last year, RingCentral reported EPS of $0.22 on revenue of $252.87 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, EPS would be up 22.73%. Sales would be up 25.53% from the year-ago period. Here is how the RingCentral's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.24 0.20 0.18 0.21
EPS Actual 0.26 0.24 0.19 0.22
Revenue Estimate 287.33 M 263.78 M 256.65 M 239.45 M
Revenue Actual 303.62 M 277.99 M 267.51 M 252.87 M

Stock Performance

Shares of RingCentral were trading at $431.81 as of February 11. Over the last 52-week period, shares are up 80.4%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. RingCentral is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings