RingCentral (RNG, $234.47) beats Q3 earnings expectations; boost guidance
Shares of RingCentral jumped in after hours trading, following the company’s third quarter results that crushed analysts’ expectations.
For the quarter ended Sept. 30, the enterprise cloud-based services company’s non-GAAP net income rose to 36 cents a share from 26 cents in the previous year, exceeding the 33 cents a share expected by analysts polled by FactSet.
Revenue climbed +36.5% from the year-ago quarter to $414.6 million, vs. $393.42 million anticipated by analysts polled by FactSet.
Looking ahead, RingCentral boosted its full year revenue projection to up to $1.581 billion in sales implying annual growth between 33% to 34%, vs. prior forecast of 30% to 31%.
The company also raised full-year non-GAAP earnings per share estimates to $1.32 a share, from its prior projected range of $1.28 a share to $1.30 a share.
RingCentral announced new partnerships with software vendors in the healthcare sector including Ascom, ChronicCareIQ, and Ellkay.
The company has also collaborated with telecom provider MCM Telecom to offer hybrid work using a single app for video conferencing, mobile collaboration, and advanced business phone capabilities.
It has received a license to provide its cloud communications software and voice solutions in India.
RNG's Stochastic Oscillator is remaining in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where RNG advanced for three days, in of 282 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 174 cases where RNG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 18, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on RNG as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for RNG turned negative on December 17, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RNG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. RNG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (97.087) is normal, around the industry mean (31.078). P/E Ratio (0.000) is within average values for comparable stocks, (160.694). Projected Growth (PEG Ratio) (0.443) is also within normal values, averaging (2.755). Dividend Yield (0.000) settles around the average of (0.084) among similar stocks. P/S Ratio (1.454) is also within normal values, averaging (58.228).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RNG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of software-as-a-service solutions for business communications
Industry PackagedSoftware