After the market closed on Thursday, 8×8, Inc. (NASDAQ:EGHT) released their third quarter fiscal 2016 financial results, and to the surprise of many, they blew away Wall Street’s estimates. Total revenue came in at $53.2 million, which is an increase year-over-year of 29%, while service revenue also increased 29% to $48.9 million. EPS for the quarter came in at $0.05 per share, which blew away the Street’s estimate of just $0.03.
‘8×8 executed another solid quarter, posting a 94% increase in new monthly recurring revenue sold to mid-market and enterprise customers and by channel sales teams. We continued to demonstrate the effectiveness of our global and multi-channel growth strategies, capturing larger customers and demonstrating our leadership position in the fast-growing UCaaS industry,’ said 8×8 CEO . ‘I am extremely pleased with how our team is executing across the board, from the increasing productivity of our sales organization to the dedication and success of our global deployment teams.’
The stock has responded in pre-maret trading by shooting up over 12% as investors were just as surprised as Wall Street over these better than expected numbers. The stock closed at $11.16 during the last trading session. It is up 22.23% since June 17, 2015 and is uptrending. It has outperformed the S&P500 by 31.10%.
From a total of 3 analysts covering 8×8 (NASDAQ:EGHT) stock, 3 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $12 while the lowest target price is $9.75. The mean of all analyst targets is $11.83 which is 6.00% above today’s ($11.16) stock price. 8×8 was the topic of 4 analyst reports since August 10, 2015 according to the firm StockzIntelligence Inc. Northland Capital maintained shares on October 23 with a “Outperform” rating.
The institutional sentiment increased to 0.99 in Q2 2015. It’s up 0.19, from 0.8 in 2015Q2. The ratio increased, as 19 funds sold all their 8×8, Inc. shares they owned while 49 reduced their positions. 20 funds bought stakes while 47 increased their total positions. Institutions now own 65.18 million shares which is 12.28% more than the previous share count of 58.05 million in 2015Q2.
Archon Capital Management Llc holds 6.9% of its total portfolio in 8×8, Inc., equating to 949,700 shares. First Washington Corp owns 535,435 shares representing 2.67% of their total US portfolio. Moreover, Portolan Capital Management Llc has 2.09% of their total portfolio invested in the company, equating to 1.91 million shares. The Missouri-based Anderson Hoagland & Co has a total of 1.95% of their portfolio invested in the stock. Summit Creek Advisors Llc, a Minnesota-based fund reported 1.21 million shares owned.
Since July 28, 2015, the stock had 0 insider purchases, and 2 insider sales for a total of $848,554 in net activity. Martin Bryan R sold 97,200 shares worth $825,034.
8×8, Inc. offers Software as a Service (SaaS) communication solution. The company has a market cap of $996.43 million. The Firm is engaged in business cloud communications and development and use of Internet protocol voice, video and data communication technologies in a true SaaS model. It currently has negative earnings. The 8×8 unified cloud communications solution addresses the shortcomings of legacy and point solution cloud services through its pure cloud Software as a Service offering.