Bandwidth (BAND) Q3 Earnings: What To Expect
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Communications platform-as-a-service company Bandwidth (NASDAQ: BAND) will be reporting results tomorrow before market open. Here’s what to expect.
Bandwidth met analysts’ revenue expectations last quarter, reporting revenues of $173.6 million, up 19% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a significant improvement in its net revenue retention rate.
Is Bandwidth a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Bandwidth’s revenue to grow 19.7% year on year to $182 million, improving from the 2.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bandwidth has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4% on average.
Looking at Bandwidth’s peers in the software development segment, only F5 has reported results so far. It beat analysts’ revenue estimates by 2.2%, delivering year-on-year sales growth of 5.6%. The stock traded up 10% on the results.
Read our full analysis of F5’s earnings results here.
There has been positive sentiment among investors in the software development segment, with share prices up 7.7% on average over the last month. Bandwidth is up 8.5% during the same time and is heading into earnings with an average analyst price target of $23 (compared to the current share price of $18.66).
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