Yahoo Finance Bandwidth (BAND) Q2 Earnings: What To Expect
Communications platform-as-a-service company Bandwidth (NASDAQ: BAND) will be reporting results tomorrow before the bell. Here's what investors should know.
Bandwidth beat analysts' revenue expectations by 3.6% last quarter, reporting revenues of $171 million, up 24.1% year on year. It was a solid quarter for the company, with optimistic revenue guidance for the next quarter and an improvement in its gross margin.
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 18.9% year on year to $173.4 million, improving from the 6.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 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 4.3% 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 1.4%, posting year-on-year sales declines of 1%. The stock traded up 13% 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 2.2% on average over the last month. Bandwidth is up 36.4% during the same time and is heading into earnings with an average analyst price target of $26 (compared to the current share price of $22.55).
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