8x8 EPS Estimates Up 50%, Stock Jumps 36.5% After Q3 Beat
Analysts lifted current-quarter EPS estimates by 50% to $0.07 and full-year forecasts by 43% to $0.36, earning the company a strong-buy rating. Stock soared 36.5% in four weeks after Q3 revenue and net income topped guidance on AI-driven usage-based growth despite tighter margins.
1. Analysts Raise EPS Estimates
Analysts increased current-quarter EPS projections from $0.05 to $0.07 (a 50% rise) and full-year forecasts by 43% to $0.36, reflecting improved consensus outlook. This revision momentum secured a strong-buy rating for the company.
2. Q3 Results Top Guidance and Growth Drivers
The company reported Q3 revenue and net income above its guidance range, driven by a surge in usage-based services, notably its AI-powered communication offerings. However, the shift towards high-growth usage models exerted downward pressure on gross margins.
3. Valuation Overview and Stock Performance
With a forward P/E of 7.28, PEG of 1.03 and P/B of 2.56, the stock trades at attractive multiples versus peers. Shares rallied 36.5% over four weeks as investors responded to the strong beat-and-raise trend.
4. Outlook and Potential Upside
Management forecasts low single-digit underlying revenue growth for fiscal 2027, but expects accelerated uptake of AI features and expansion in Asia to drive upside. Investors should monitor margin trends and adoption rates of new offerings.