Communications platform-as-a-service company Bandwidth (NASDAQ: BAND) will be reporting results this Tuesday before market hours. Here’s what investors should know.
Bandwidth beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $174.2 million, up 1.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
Is Bandwidth a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Bandwidth’s revenue to grow 3.1% year on year to $178.9 million, slowing from the 19% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bandwidth has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.6% on average.
With Bandwidth being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for software development stocks. However, there has been positive investor sentiment in the segment, with share prices up 2.7% on average over the last month. Bandwidth is down 3.8% during the same time and is heading into earnings with an average analyst price target of $20.75 (compared to the current share price of $15.29).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
