Sangoma Technologies Reports Quarterly Loss: What’s Next for Investors?
Quarterly Loss Exceeds Estimates
Sangoma Technologies Corporation (SANG) reported a quarterly loss of $0.06 per share, which is worse than the Zacks Consensus Estimate of a $0.05 loss. Last year, the company also faced a loss, reporting $0.07 per share. These figures exclude non-recurring items.
Disappointing Revenue Figures
This earnings report reflects an earnings surprise of -20%. In the previous quarter, the company was anticipated to post a loss of $0.04 per share, but actually reported a loss of $0.05, marking a -25% surprise. Sangoma Technologies has only surpassed consensus EPS estimates once in the past four quarters.
For the quarter ending September 2024, Sangoma generated $60.15 million in revenues, missing the Zacks Consensus Estimate by 2.11%. This figure is a decrease from $63.03 million recorded a year earlier. Like its EPS, the company has achieved revenue estimates only once in the last four quarters.
Future Outlook and Stock Performance
The immediate direction of Sangoma’s stock price will largely hinge on insights shared during the upcoming earnings call. Since the start of the year, Sangoma’s shares have surged approximately 90.3%, outperforming the S&P 500’s increase of 21.2%.
What’s on the Horizon for Sangoma?
As investors ponder the future of the stock, understanding the company’s earnings outlook becomes crucial. This includes existing earnings expectations for upcoming quarters and any recent changes to these estimates.
Research indicates a strong link between stock performance and trends in earnings estimate revisions. Investors can track these revisions or use a reliable rating tool like the Zacks Rank, which successfully leverages earnings estimate changes.
Currently, the estimate revisions for Sangoma show a mixed trend. Following this latest earnings report, the stock holds a Zacks Rank of #3 (Hold), suggesting it will perform in line with the market. The consensus EPS estimate stands at -$0.03 with revenues projected at $63.13 million for the next quarter. For the current fiscal year, the estimated EPS is -$0.07 against revenues of $254.26 million.
It’s essential for investors to consider the broader industry outlook, as it plays a significant role in a stock’s performance. Presently, the Internet – Software industry has a Zacks Industry Rank in the top 24% of over 250 categories, indicating relatively strong performance. Historically, stocks in the top 50% of ranked industries outperform those in the bottom half by more than 2 to 1.
Upcoming Reports from Industry Peers
Meanwhile, StoneCo Ltd. (STNE), another player in the same sector, has yet to release its results for the quarter ended September 2024. Expected on November 12, StoneCo is projected to report earnings of $0.32 per share, marking an 18.5% increase year-over-year. The consensus EPS estimate for this upcoming quarter has remained steady over the past month, with expected revenues of $594.78 million, down 7.6% from the previous year.
Investment Insights from Zacks Experts
Amidst the fluctuations in stock performance, Zacks experts have selected five favored stocks, each anticipated to rise by over 100% in the near future. Among these, Director of Research Sheraz Mian has identified one potential standout, particularly appealing to younger audiences, which generated nearly $1 billion in revenue last quarter.
Despite the unpredictability that comes with investments, this company could follow in the footsteps of previously recommended stocks like Nano-X Imaging, which saw an impressive increase of +129.6% within nine months.
For those interested in the latest insights from Zacks Investment Research, you can access the report featuring “5 Stocks Set to Double” for free.
Sangoma Technologies Corporation (SANG) : Free Stock Analysis Report
StoneCo Ltd. (STNE) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
