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 in -2.61% downward trend, declining for three consecutive days on November 29, 2024
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where RNG declined for three days, in of 333 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for RNG moved out of overbought territory on November 11, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 18 similar instances where the indicator moved out of overbought territory. In of the 18 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
RNG broke above its upper Bollinger Band on November 07, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 25, 2024. You may want to consider a long position or call options on RNG as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for RNG just turned positive on December 04, 2024. Looking at past instances where RNG's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
The 50-day moving average for RNG moved above the 200-day moving average on November 15, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
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 169 cases where RNG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend 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 (30.949). P/E Ratio (0.000) is within average values for comparable stocks, (160.291). 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 (57.899).
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.
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General Information
a provider of software-as-a-service solutions for business communications
Industry PackagedSoftware