RingCentral Analysts Slash Their Forecasts After Q4 Results

RingCentral, Inc. RNG reported upbeat earnings for its fourth quarter, but issued weak guidance for its first quarter on Tuesday.

RingCentral posted adjusted earnings of 86 cents per share, beating market estimates of 82 cents per share. The company’s quarterly sales came in at $571.00 million versus expectations of $570.42 million, according to data from Benzinga Pro.

RingCentral said it sees first-quarter adjusted EPS of 79 cents to 80 cents per share, versus estimates of 82 cents per share. The company expects revenue of $575 million to $580 million versus expectations of $581.486 million.

RingCentral sees FY24 adjusted EPS of $3.50 to $3.58 on revenue of $2.260 billion to $2.285 billion.

"We delivered another quarter of record operating margin and free cash flow, which were above our outlook," said Sonalee Parekh, RingCentral's CFO. "We are just beginning to realize the full cash flow potential of our business, with continuing efforts to improve our efficiency and productivity, while investing for growth."

RingCentral shares gained 2.9% to trade at $31.74 on Wednesday.

These analysts made changes to their price targets on RingCentral after the company reported quarterly results.

• Needham cut the price target on RingCentral from $46 to $42. Needham analyst Ryan Koontz maintained a Buy rating.
• Keybanc slashed the price target on RingCentral from $50 to $48. Keybanc analyst Thomas Blakey maintained an Overweight rating.
• Wedbush analyst Taz Koujalgi, meanwhile, reiterated RingCentral with a Neutral and maintained a $40 price target.

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