8X8 Inc (NYSE:EGHT) is among the top-rated small-cap stocks, thanks to a strong share price growth of 28% in the last three months. The stock is up almost 103% in the last three years. At present, EGHT stock is trading around $17 a share, just shy of the 52-week high of $18.5 a share. Its stock gained more than 10% price appreciation following stronger than expected results for the third quarter of fiscal 2018.
In the third quarter, 8X8 has topped revenue estimates by $1.7 million, while earnings beat the consensus estimate by $0.01 per share.
The company’s service revenue surged 20% to $71.9 million, compared to the past year period. Its total revenue also soared 19% to $75.6 million over the previous year period.
“Our strong third quarter results demonstrate that we are executing on our strategic initiatives. Mid-market and enterprise bookings grew 40% year-over-year,” said Vik Verma, Chief Executive Officer at 8×8, Inc.
The company continues to experience strong demand from CIOs integrated enterprise communications solutions for their customers, employees, and partners. The company said almost 49% of new monthly recurring revenue originated from customers purchasing its integrated UCaaS and CCaaS solutions. The company believes they are in a position to capitalize on increasing demand from CIOs.
Following strong financial numbers, analysts are also raising their price targets for EGHT stock. B. Riley increased 8X8 stock price target to $16 from the earlier target of $14 a share. Needham has raised price target outlook to $19 a share from $16, while Robert Baird has an 8X8 stock price target of $21.
After increasing the price target to $22, BofA Merrill Lynch said, “The company continues to gain important enterprise reference customers.”
Overall, the company continues to impress investors with its revenue and earnings growth potential. Moreover, record growth in enterprise booking is enhancing investor’s sentiments on its future fundamentals, resulting in increased bullish bets on its stock.
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