RingCentral (NYSE:RNG) Issues FY 2025 Earnings Guidance

RingCentral (NYSE:RNG) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share guidance of 4.130-4.270 for the period, compared to the consensus earnings per share estimate of 4.220. The company issued revenue guidance of $2.5 billion-$2.5 billion, compared to the consensus revenue estimate of $2.6 billion. RingCentral also updated its Q1 2025 guidance to 0.930-0.970 EPS.

RingCentral Stock Performance

Shares of RingCentral stock opened at $28.90 on Friday. The company’s 50 day moving average price is $34.82 and its 200-day moving average price is $34.25. RingCentral has a 52-week low of $26.98 and a 52-week high of $42.19.

RingCentral (NYSE:RNG) last released its quarterly earnings data on Thursday, February 20th. The software maker reported $0.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.73). The firm had revenue of $614.51 million during the quarter, compared to analysts’ expectations of $612.37 million. RingCentral had a negative net margin of 2.43% and a negative return on equity of 12.34%. Sell-side analysts anticipate that RingCentral will post 1.29 earnings per share for the current fiscal year.

Analysts Set New Price Targets

RNG has been the topic of several research analyst reports. Needham & Company LLC reduced their target price on RingCentral from $42.00 to $36.00 and set a “buy” rating on the stock in a research note on Friday. Wedbush boosted their price objective on shares of RingCentral from $36.00 to $41.00 and gave the company a “neutral” rating in a research report on Friday, November 8th. Morgan Stanley raised their target price on shares of RingCentral from $38.00 to $40.00 and gave the stock an “equal weight” rating in a research report on Wednesday, December 18th. Barclays reduced their price target on shares of RingCentral from $37.00 to $31.00 and set an “equal weight” rating on the stock in a research report on Friday. Finally, Wells Fargo & Company restated an “underweight” rating and issued a $30.00 price objective (down from $38.00) on shares of RingCentral in a report on Tuesday, January 7th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, RingCentral currently has an average rating of “Hold” and an average target price of $38.15.

Insider Activity at RingCentral

In other news, SVP John H. Marlow sold 8,720 shares of RingCentral stock in a transaction that occurred on Tuesday, December 10th. The shares were sold at an average price of $42.05, for a total value of $366,676.00. Following the completion of the sale, the senior vice president now directly owns 334,869 shares in the company, valued at $14,081,241.45. The trade was a 2.54 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Robert I. Theis sold 1,457 shares of the stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $37.79, for a total transaction of $55,060.03. Following the transaction, the director now owns 28,690 shares in the company, valued at approximately $1,084,195.10. This trade represents a 4.83 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 13,091 shares of company stock valued at $542,958. 6.97% of the stock is owned by corporate insiders.

About RingCentral

RingCentral, Inc, together with its subsidiaries, provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide. The company’s products include RingCentral Message Video Phone that provides a unified experience for communication and collaboration across multiple modes, including HD voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Contact Center, a collaborative contact center solution that delivers AI-powered omnichannel and workforce engagement solutions with integrated RingCentral MVP; and RingCX, an AI-powered contact center that a native delivers omnichannel experience.