Bandwidth Forecasts Flat $208.3M Q4 Revenue with $0.33 EPS Guidance
Bandwidth expects flat Q4 revenue of $208.3 million and adjusted earnings of $0.33 per share, following Q3 sales of $191.9 million that beat analysts’ forecasts by 1% despite a 1% year-on-year decline. Shares have fallen 2.6% over the past month, trading well below the $22.75 average target.
1. Q3 Performance Review
Bandwidth reported Q3 revenue of $191.9 million, down 1% year on year but 1% above analysts’ estimates, and delivered EBITDA results and full-year guidance that exceeded forecasts.
2. Q4 Forecast Expectations
Analysts project Q4 revenue to remain flat at $208.3 million compared to last year, and adjusted earnings of $0.33 per share, reflecting a slowdown from last year’s 27% growth.
3. Peer Comparisons
Peers Twilio and Fastly posted year-on-year Q4 revenue gains of 14.3% and 22.8% respectively, each topping estimates by over 3%, while software development stocks have underperformed, helping set context for Bandwidth’s forecast.
4. Share Price and Analyst Targets
Bandwidth’s shares have declined 2.6% in the last month and trade around $12.87, significantly below the $22.75 average analyst price target, indicating potential upside if guidance is met or exceeded.