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Exploring Analyst Estimates for RingCentral (RNG) Q3 Earnings, Beyond Revenue and EPS

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The upcoming report from RingCentral (RNG - Free Report) is expected to reveal quarterly earnings of $0.92 per share, indicating an increase of 18% compared to the year-ago period. Analysts forecast revenues of $601.91 million, representing an increase of 7.8% year over year.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

That said, let's delve into the average estimates of some RingCentral metrics that Wall Street analysts commonly model and monitor.

The consensus estimate for 'Revenues- Subscriptions' stands at $573.77 million. The estimate indicates a year-over-year change of +8.1%.

The collective assessment of analysts points to an estimated 'Revenues- Other' of $28.01 million. The estimate indicates a year-over-year change of +3.2%.

Analysts expect 'Gross Margin - Subscriptions' to come in at 81.6%. Compared to the current estimate, the company reported 73% in the same quarter of the previous year.

The average prediction of analysts places 'Annualized Exit Monthly Recurring Subscriptions (ARR)' at $2.47 billion. Compared to the present estimate, the company reported $2.26 billion in the same quarter last year.

View all Key Company Metrics for RingCentral here>>>

RingCentral shares have witnessed a change of +22.7% in the past month, in contrast to the Zacks S&P 500 composite's +0.7% move. With a Zacks Rank #4 (Sell), RNG is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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