RALEIGH – Shares in communications services provider Bandwidth jumped more than 5% moments after the Raleigh-based firm forecast a profit and higher revenues are on the way. Its second quarter performance also beat Street expectations on revenues and the size of its loss.
That’s good enws for a stock that’s been hammered in 2022.
Shares of Bandwidth (Nasdaq: BAND) have fallen 73% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $19.66, a decrease of 85% in the last 12 months.
In after-market trading shares climbed to as high as $20.77, up from a close of $19.66.
The company reported a loss of $6.2 million or 25 cents per share in its second quarter, althoguh losses, adjusted for one-time gains and costs, were 4 cents per share.
The results surpassed Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for a loss of 7 cents per share.
Communications services provider Bandwidth adds chief innovation officer
Revenue also exceeded expectations on revenue at $136.5 million, Three analysts surveyed by Zacks expected $133.1 million.
“I am proud of the operating discipline that enabled us to deliver results that exceeded expectations on both the top and bottom line. Our second quarter results and customer wins demonstrate our execution and focus on serving enterprise customers amidst an uncertain macroeconomic environment,” said David Morken, Bandwidth’s CEO, in a statement. “I am confident we are well positioned because we provide mission-critical cloud communications that reduce costs for large enterprises.”
Looking ahead, for the current quarter ending in October, Bandwidth expects its per-share earnings to range from 2 cents to 4 cents.
The company said it expects revenue in the range of $140 million to $142 million for the fiscal third quarter.
Bandwidth expects full-year earnings in the range of 10 cents to 14 cents per share, with revenue ranging from $551 million to $557 million.
“Our over performance in the second quarter demonstrates that we continue to execute through the isolated customer headwinds we previously discussed,” said Daryl Raiford, CFO of Bandwidth. “While we have now over-achieved expectations in the first two quarters of this year, we recognize the macroeconomic conditions remain uncertain. Accordingly, as a measure of prudence, we are maintaining our revenue and profitability outlook for the full year.”
Read the full earnings report online.
The Associated Press contributed to this report.
