RingCentral (NYSE:RNG), a provider of cloud-based communication products, declined in pre-market trading after its outlook fell short of Wall Street expectations. For the first quarter, the company guided for revenues to land between $575 million and $580 million, with adjusted earnings of $0.79 to $0.80 per share. This was below Street estimates of $581 million in revenues and adjusted earnings of $0.82 per share.
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For FY24, the firm expects revenues of $2.37 billion to $2.39 billion, with adjusted earnings likely to be between $3.50 to $3.58 per share. Analysts were expecting adjusted earnings of $3.51 per share on revenue of $2.4 billion.
In the fourth quarter, RingCentral’s total revenues increased 9% year-over-year to $571 million, which was above consensus estimates of $570.4 million. The company reported adjusted earnings of $0.86 per share compared to $0.60 per share in the same period last year, beating Street estimates of $0.82 per share.
What Is the Target for RNG Stock?
Analysts remain cautiously optimistic about RNG stock with a Moderate Buy consensus rating based on three Buys and seven Holds. Over the past year, RNG has dropped by more than 10%, and the average RNG price target of $37.14 implies an upside potential of 20.4% at current levels. However, it’s worth noting that estimates will likely change following today’s earnings report.
