Ooma (NYSE:OOMA) Updates FY 2027 Earnings Guidance

Key Points

• Ooma raised its FY 2027 outlook to EPS of $1.35–$1.38 and revenue of $332.0–$333.5 million, both above analyst consensus estimates of $1.21 EPS and $327.3 million revenue. Q3 2027 EPS guidance was set at $0.34–$0.35.
• The company’s latest quarter exceeded expectations, with adjusted EPS of $0.35 versus the $0.33 consensus and revenue of $83.23 million versus estimates of $81.72 million.
• Analysts maintain a generally positive view, giving Ooma a “Moderate Buy” consensus rating and an average price target of $23.67, compared with the stock’s recent price of $20.53.

Ooma (NYSE:OOMA - Get Free Report) updated its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 1.350-1.380 for the period, compared to the consensus EPS estimate of 1.210. The company issued revenue guidance of $332.0 million-$333.5 million, compared to the consensus revenue estimate of $327.3 million. Ooma also updated its Q3 2027 guidance to 0.340-0.350 EPS.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the company. Citigroup reaffirmed a "market perform" rating on shares of Ooma in a research report on Wednesday, May 27th. UBS Group set a $24.00 price target on shares of Ooma in a research note on Wednesday, May 27th. B. Riley Financial reiterated a "buy" rating on shares of Ooma in a research note on Monday, May 18th. Lake Street Capital increased their price objective on Ooma from $18.00 to $23.00 and gave the company a "buy" rating in a report on Wednesday, May 27th. Finally, Benchmark reissued a "buy" rating on shares of Ooma in a research report on Monday, August 17th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $23.67.

Ooma Stock Performance

Shares of NYSE OOMA traded down $0.06 during midday trading on Wednesday, hitting $20.53. The company's stock had a trading volume of 348,208 shares, compared to its average volume of 292,929. The stock has a fifty day moving average price of $20.14 and a 200 day moving average price of $16.99. Ooma has a one year low of $9.79 and a one year high of $22.72. The company has a current ratio of 0.94, a quick ratio of 0.69 and a debt-to-equity ratio of 0.50. The firm has a market capitalization of $564.58 million, a price-to-earnings ratio of 64.16 and a beta of 1.19.

Ooma (NYSE:OOMA - Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The technology company reported $0.35 earnings per share for the quarter, beating analysts' consensus estimates of $0.33 by $0.02. Ooma had a net margin of 3.17% and a return on equity of 20.21%. The business had revenue of $83.23 million during the quarter, compared to analyst estimates of $81.72 million. Ooma has set its FY 2027 guidance at 1.350-1.380 EPS and its Q3 2027 guidance at 0.340-0.350 EPS. On average, research analysts forecast that Ooma will post 0.8 EPS for the current fiscal year.

Insider Buying and Selling at Ooma

In related news, Director William D. Pearce sold 3,000 shares of the business's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $17.98, for a total transaction of $53,940.00. Following the completion of the transaction, the director owned 181,652 shares of the company's stock, valued at approximately $3,266,102.96. The trade was a 1.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Eric B. Stang sold 27,666 shares of the company's stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $18.50, for a total value of $511,821.00. Following the completion of the transaction, the chief executive officer owned 818,718 shares in the company, valued at $15,146,283. This represents a 3.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 118,652 shares of company stock worth $2,225,186. 9.90% of the stock is owned by corporate insiders.

Institutional Trading of Ooma

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in shares of Ooma by 2.4% during the 3rd quarter. Vanguard Group Inc. now owns 1,501,963 shares of the technology company's stock valued at $18,009,000 after purchasing an additional 34,960 shares during the last quarter. JPMorgan Chase & Co. lifted its position in Ooma by 4.0% in the 4th quarter. JPMorgan Chase & Co. now owns 576,041 shares of the technology company's stock worth $6,757,000 after buying an additional 22,125 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in Ooma by 17.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 513,820 shares of the technology company's stock worth $6,161,000 after buying an additional 76,088 shares in the last quarter. Dimensional Fund Advisors LP grew its position in Ooma by 5.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 334,910 shares of the technology company's stock valued at $3,928,000 after acquiring an additional 17,184 shares during the last quarter. Finally, Millennium Management LLC grew its position in Ooma by 81.6% during the first quarter. Millennium Management LLC now owns 316,564 shares of the technology company's stock valued at $4,144,000 after acquiring an additional 142,220 shares during the last quarter. Hedge funds and other institutional investors own 80.42% of the company's stock.

About Ooma

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.

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