OOMA Gears Up for Q2 Earnings: Is a Beat in the Offing?
Accretive technological innovations and effective business strategies are likely to have fueled OOMA's second-quarter fiscal 2022 earnings.
Ooma, Inc. OOMA is scheduled to report second-quarter fiscal 2022 results on Sep 2, after the closing bell. In the previous quarter, the company delivered an earnings surprise of 57.1%. It pulled off a trailing four-quarter earnings surprise of 65.5%, on average.
The Sunnyvale, CA-based communications solutions provider is expected to have recorded higher revenues on a year-over-year basis supported by strong growth and effective business strategies. The company’s significant efforts to expand its international footprint coupled with investments in new technological features, and marketing and channel development might have boosted Ooma’s profitability.
Factors at Play
During the quarter under review, Ooma unveiled an innovative offering — Ooma Caller Info Match — that automatically displays in-depth caller profiles for both inbound and outbound calls by tapping into a user selected source like online search engine or a Customer Relationship Management system. This one-of-a-kind feature is part of Ooma Office Pro business phone service.
It collaborated with Boca Raton, FL-based Jazzware to enhance the connectivity solutions of the hospitality industry nationwide on the back of its avant-garde Enterprise unified communications as a service (UCaaS) platform. Apart from the UCaaS platform, Ooma provided its SIP trunking service. The offering helped in connecting contact centers and hotel premises to the Public Switched Telephone Network.
In the second quarter, Ooma enhanced its video conferencing platform — Ooma Meetings — with the incorporation of Remote Control functionality. The new enhancement will improve virtual meetings with adequate technological support and instant collaboration. This, in turn, will boost business agility without compromising on customer experience. It also unveiled another advanced feature, Meeting Logs, wherein the participant can view a list for all incidences of a particular meeting in the last 30 days.
Further, it joined forces with AppSmart to provide Ooma Office and Ooma Enterprise business phone and unified communications services through the latter’s nationwide network of more than 5,000 technology advisors. The company also made UJET contact center solution accessible to Ooma Enterprise customers, thereby enabling them to capitalize on Ooma’s UCaaS and UJET’s contact center as a service cloud-based platforms from a single source. The company’s fiscal second-quarter top line is likely to have been positively impacted by such developments.
For the to-be-reported quarter, the Zacks Consensus Estimate for total revenues is pegged at $46 million, which indicates an increase of 12.2% from the year-ago quarter’s reported figure. Adjusted earnings per share are pegged at 9 cents, which suggests a decline from 13 cents reported in the year-ago quarter.
What Our Model Says
Our proven model predicts an earnings beat for Ooma this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is perfectly the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ooma’s Earnings ESP which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is +5.88%.
Zacks Rank: Ooma currently has a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Signet Jewelers Limited SIG is slated to release second-quarter fiscal 2022 results on Sep 2. It has an Earnings ESP of +2.28% and currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oxford Industries, Inc. OXM is slated to release second-quarter fiscal 2021 results on Sep 2. It has an Earnings ESP of +0.75% and carries a Zacks Rank #2, at present.
Lululemon Athletica Inc. LULU has an Earnings ESP of +3.06% and a Zacks Rank of 2. The company is set to report second-quarter fiscal 2021 results on Sep 8.
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