What is Benchmark's Forecast for Ooma FY2027 Earnings?

Key Points

• Benchmark raised Ooma’s FY2027 EPS forecast to $0.89 from $0.83 and maintained a “Buy” rating. The firm also estimates $0.22 EPS for Q4 2027 and $1.03 for FY2028, compared with the $0.86 consensus estimate for the current full year.
• Ooma exceeded quarterly expectations, reporting $0.35 EPS versus the $0.33 consensus and revenue of $83.23 million versus $81.72 million expected.
• Analyst sentiment remains broadly positive, with five Buy ratings and one Hold rating producing a “Moderate Buy” consensus and an average price target of $25.00; Ooma shares opened at $22.51 and were up 2.9%.

Ooma, Inc. (NYSE:OOMA - Free Report) - Investment analysts at Benchmark boosted their FY2027 earnings per share (EPS) estimates for Ooma in a report released on Thursday, August 27th. Benchmark analyst M. Harrigan now anticipates that the technology company will post earnings per share of $0.89 for the year, up from their prior forecast of $0.83. Benchmark currently has a "Buy" rating on the stock. The consensus estimate for Ooma's current full-year earnings is $0.86 per share. Benchmark also issued estimates for Ooma's Q4 2027 earnings at $0.22 EPS and FY2028 earnings at $1.03 EPS.

OOMA has been the topic of a number of other research reports. Alliance Global Partners reaffirmed a "buy" rating on shares of Ooma in a report on Thursday, August 27th. Lake Street Capital reissued a "buy" rating and issued a $25.00 price target on shares of Ooma in a report on Thursday, August 27th. William Blair set a $24.00 price target on shares of Ooma in a report on Monday, August 17th. UBS Group reiterated a "buy" rating on shares of Ooma in a research report on Thursday, August 27th. Finally, Citigroup restated a "market perform" rating on shares of Ooma in a research report on Wednesday, May 27th. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $25.00.

Ooma Stock Up 2.9%

OOMA stock opened at $22.51 on Thursday. The company has a quick ratio of 0.69, a current ratio of 0.94 and a debt-to-equity ratio of 0.50. The firm has a market capitalization of $619.00 million, a PE ratio of 59.24 and a beta of 1.20. Ooma has a twelve month low of $9.79 and a twelve month high of $26.19. The stock has a 50-day simple moving average of $20.71 and a two-hundred day simple moving average of $17.43.

Ooma (NYSE:OOMA - Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The technology company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.02. The company had revenue of $83.23 million during the quarter, compared to analysts' expectations of $81.72 million. Ooma had a return on equity of 23.89% and a net margin of 3.57%.Ooma has set its FY 2027 guidance at 1.350-1.380 EPS and its Q3 2027 guidance at 0.340-0.350 EPS.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. IFC & Insurance Marketing Inc. bought a new stake in shares of Ooma in the 4th quarter valued at about $34,000. Tower Research Capital LLC TRC lifted its position in Ooma by 225.2% in the second quarter. Tower Research Capital LLC TRC now owns 3,620 shares of the technology company's stock valued at $47,000 after purchasing an additional 2,507 shares during the last quarter. Meeder Asset Management Inc. grew its holdings in shares of Ooma by 28.3% in the first quarter. Meeder Asset Management Inc. now owns 3,359 shares of the technology company's stock worth $49,000 after purchasing an additional 740 shares during the last quarter. Legal & General Group Plc purchased a new position in shares of Ooma in the second quarter worth $50,000. Finally, CWM LLC raised its holdings in Ooma by 45.6% during the 4th quarter. CWM LLC now owns 4,400 shares of the technology company's stock valued at $52,000 after buying an additional 1,378 shares during the last quarter. Hedge funds and other institutional investors own 80.42% of the company's stock.

Insider Buying and Selling at Ooma

In related news, Director Russell Mann sold 20,000 shares of the stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $18.35, for a total transaction of $367,000.00. Following the transaction, the director owned 116,115 shares of the company's stock, valued at approximately $2,130,710.25. This trade represents a 14.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Eric B. Stang sold 27,666 shares of Ooma stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $18.50, for a total transaction of $511,821.00. Following the completion of the transaction, the chief executive officer owned 818,718 shares in the company, valued at approximately $15,146,283. The trade was a 3.27% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 111,922 shares of company stock valued at $2,240,861. 9.90% of the stock is owned by insiders.

Ooma News Summary

Here are the key news stories impacting Ooma this week:

• Positive Sentiment: Analysts raised longer-term earnings forecasts. Lake Street Capital increased its FY2027 EPS estimate to $0.86 from $0.79 and its FY2028 estimate to $0.86 from $0.83. Benchmark raised FY2027 EPS to $0.89 from $0.83 and FY2028 EPS to $1.03 from $0.98. Citizens JMP also lifted its FY2027 estimate to $0.83 from $0.77 and FY2028 estimate to $0.96 from $0.90. These revisions suggest improving confidence in Ooma’s earnings growth.
• Positive Sentiment: Quarterly forecast revisions were mostly upward. Analysts raised estimates for several 2027-2029 quarters, including Citizens JMP’s Q4 2027 estimate, which increased to $0.18 from $0.16, and Lake Street’s Q1 2028 estimate, which increased to $0.22 from $0.20.
• Positive Sentiment: Buy ratings and investor engagement provide additional support. Lake Street Capital and Benchmark maintain “Buy” ratings. Lake Street’s $25 price target is above the stock’s recent trading level. Ooma also plans virtual meetings with institutional investors during the NYSE Investor Access Technology Day on September 23. Ooma investor meetings announcement
• Neutral Sentiment: Ooma launched a POTS retirement resource hub to help organizations transition away from legacy copper infrastructure. The initiative may support demand for Ooma’s services, although the immediate financial impact is unclear. Ooma POTS retirement resource hub announcement
• Negative Sentiment: Not all revisions were positive. Citizens JMP trimmed its Q1 2029 EPS estimate to $0.28 from $0.29, reduced Q3 2028 EPS to $0.24 from $0.25, and lowered FY2029 EPS to $1.20 from $1.21. Lake Street also cut its Q4 2027 estimate slightly to $0.19 from $0.20.

Ooma Company Profile

Ooma, Inc, headquartered in Sunnyvale, California, is a leading provider of communication services for residential and business customers. Since its founding in 2004, Ooma has built a cloud-based platform that leverages Voice over Internet Protocol (VoIP) technology to deliver voice, video and data services over broadband networks. The company went public on the New York Stock Exchange in 2015 under the ticker OOMA and has continued to expand its service portfolio to meet evolving customer demands.

For residential users, Ooma offers an all-in-one home phone service that includes its flagship Telo device, mobile and web applications, and optional smart home security features.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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