Here's Why RingCentral Stock Jumped as Much as 10.7% Higher Today
Shares of RingCentral (NYSE: RNG) surged as much as 10.7% higher on Wednesday morning, lifted by a robust earnings report. The cloud-based communications and collaboration specialist beat analyst estimates across the board. Management also offered mixed guidance for the next quarter and boosted the earnings target for the full year. The stock had cooled down to a 6.5% gain as of 11:50 a.m. ET.
In the second quarter of 2022, RingCentral's sales rose 28% year over year to $487 million. Within that total haul, subscription revenue increased by 32% to $463 million. Adjusted earnings rose from $0.32 to $0.45 per diluted share. Six percent of the incoming revenue was kept as free cash flows, up from 3.8% in the year-ago period.
The average Wall Street analyst would have settled for earnings near $0.40 per share on sales in the neighborhood of $479 million. Management's third-quarter guidance pointed to year-over-year revenue growth of roughly 21% and an earnings boost of approximately 42%. The top-line target stopped short of current analyst estimates while the earnings guidance exceeded the Street's consensus.
Source Fool.com
