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Bandwidth (BAND) to Report Q4 Earnings: What's in the Cards?
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Bandwidth Inc. (BAND - Free Report) is slated to report fourth-quarter 2020 results on Feb 25, after the closing bell. In the last reported quarter, adjusted earnings surpassed the Zacks Consensus Estimate by 26 cents. Notably, the company pulled off a stellar trailing four-quarter earnings surprise of 507%, on average.
Despite the COVID-19 turmoil, the Raleigh, NC-based software company is expected to have recorded higher revenues on a year-over-year basis, mainly driven by increased Communications Platform as a Service (CPaaS) revenues, innovative technological solutions and broad-based growth across its customer base on the back of business resiliency. Bandwidth’s CPaaS segment, which is considered a key long-term growth driver, is likely to have played a major role in accelerating its growth momentum, while generating positive cash flow supported by cost-effective operations.
Factors at Play
During the quarter, Bandwidth collaborated with Relay, a screen-free smartphone for kids that operates like a walkie-talkie, to route 911 calls leveraging its E911 Dynamic Location Routing, nationwide 911 network, and flexible application programming interfaces to connect with concerned parents for emergency services. Relay's GPS tracking along with Bandwidth's dynamic routing ensures that the emergency call is delivered promptly to relevant authorities for appropriate action. This is likely to be reflected in the upcoming quarterly results.
In the fourth quarter, Bandwidth completed the acquisition of Voxbone for an enterprise value of €446 million ($527 million). The transaction complements Bandwidth’s product portfolio and enables it to offer a unified software platform to better serve global customers, thereby playing a greater role in global enterprise cloud communications. The integrated offering will facilitate various firms to combine voice, video and text communications as part of their digital transition and help transform enterprise cloud communications for superior customer experience. This is likely to generate incremental revenues in the quarter.
The Zacks Consensus Estimate for revenues at the CPaaS segment, which generates the lion’s share of total revenues, is pegged at $84 million. The projection indicates nearly a two-fold increase from the year-ago quarter’s $44.2 million. The consensus mark for revenues from the Other segment is at $12.1 million, suggesting an increase from $8.2 million recorded in the year-ago quarter.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $97 million, indicating a 56.5% year-over-year jump. The consensus mark for adjusted earnings per share stands at 4 cents. The company recorded a loss of 2 cents per share in the prior-year quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Bandwidth this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 4 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Bandwidth currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Autodesk, Inc. (ADSK - Free Report) is +2.29% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Feb 25.
The Earnings ESP for Plug Power, Inc. (PLUG - Free Report) is +12.50% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 25.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Bandwidth (BAND) to Report Q4 Earnings: What's in the Cards?
Bandwidth Inc. (BAND - Free Report) is slated to report fourth-quarter 2020 results on Feb 25, after the closing bell. In the last reported quarter, adjusted earnings surpassed the Zacks Consensus Estimate by 26 cents. Notably, the company pulled off a stellar trailing four-quarter earnings surprise of 507%, on average.
Despite the COVID-19 turmoil, the Raleigh, NC-based software company is expected to have recorded higher revenues on a year-over-year basis, mainly driven by increased Communications Platform as a Service (CPaaS) revenues, innovative technological solutions and broad-based growth across its customer base on the back of business resiliency. Bandwidth’s CPaaS segment, which is considered a key long-term growth driver, is likely to have played a major role in accelerating its growth momentum, while generating positive cash flow supported by cost-effective operations.
Factors at Play
During the quarter, Bandwidth collaborated with Relay, a screen-free smartphone for kids that operates like a walkie-talkie, to route 911 calls leveraging its E911 Dynamic Location Routing, nationwide 911 network, and flexible application programming interfaces to connect with concerned parents for emergency services. Relay's GPS tracking along with Bandwidth's dynamic routing ensures that the emergency call is delivered promptly to relevant authorities for appropriate action. This is likely to be reflected in the upcoming quarterly results.
In the fourth quarter, Bandwidth completed the acquisition of Voxbone for an enterprise value of €446 million ($527 million). The transaction complements Bandwidth’s product portfolio and enables it to offer a unified software platform to better serve global customers, thereby playing a greater role in global enterprise cloud communications. The integrated offering will facilitate various firms to combine voice, video and text communications as part of their digital transition and help transform enterprise cloud communications for superior customer experience. This is likely to generate incremental revenues in the quarter.
The Zacks Consensus Estimate for revenues at the CPaaS segment, which generates the lion’s share of total revenues, is pegged at $84 million. The projection indicates nearly a two-fold increase from the year-ago quarter’s $44.2 million. The consensus mark for revenues from the Other segment is at $12.1 million, suggesting an increase from $8.2 million recorded in the year-ago quarter.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $97 million, indicating a 56.5% year-over-year jump. The consensus mark for adjusted earnings per share stands at 4 cents. The company recorded a loss of 2 cents per share in the prior-year quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Bandwidth this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 4 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Bandwidth Inc. Price and EPS Surprise
Bandwidth Inc. price-eps-surprise | Bandwidth Inc. Quote
Zacks Rank: Bandwidth currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
LHC Group, Inc. is set to release quarterly numbers on Feb 25. It has an Earnings ESP of +2.44% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Autodesk, Inc. (ADSK - Free Report) is +2.29% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Feb 25.
The Earnings ESP for Plug Power, Inc. (PLUG - Free Report) is +12.50% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 25.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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