Ooma (NYSE:OOMA) Updates Q3 2027 Earnings Guidance

Key Points

• Ooma raised or reaffirmed strong Q3 FY2027 guidance, projecting EPS of $0.340–$0.350 versus the $0.290 analyst consensus and revenue of $83.7–$84.5 million versus the $81.9 million consensus. Full-year FY2027 EPS guidance is $1.350–$1.380.
• The company’s latest quarterly results exceeded expectations, with EPS of $0.35 versus $0.33 expected and revenue of $83.23 million versus $81.72 million anticipated.
• Analyst sentiment remains positive, with four Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $23.67. However, insiders sold 118,652 shares worth approximately $2.23 million over the past 90 days.

Ooma (NYSE:OOMA - Get Free Report) issued an update on its third quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.340-0.350 for the period, compared to the consensus estimate of 0.290. The company issued revenue guidance of $83.7 million-$84.5 million, compared to the consensus revenue estimate of $81.9 million. Ooma also updated its FY 2027 guidance to 1.350-1.380 EPS.

Ooma Trading Down 0.3%

Shares of OOMA traded down $0.06 during mid-day trading on Wednesday, hitting $20.53. The company had a trading volume of 348,208 shares, compared to its average volume of 292,929. Ooma has a 1-year low of $9.79 and a 1-year high of $22.72. The business's 50-day simple moving average is $20.14 and its 200-day simple moving average is $16.99. The stock has a market cap of $564.58 million, a PE ratio of 64.16 and a beta of 1.19. The company has a quick ratio of 0.69, a current ratio of 0.94 and a debt-to-equity ratio of 0.50.

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

Analyst Ratings Changes

A number of brokerages recently weighed in on OOMA. Benchmark reiterated a "buy" rating on shares of Ooma in a report on Monday, August 17th. B. Riley Financial reissued a "buy" rating on shares of Ooma in a research report on Monday, May 18th. Citigroup reissued a "market perform" rating on shares of Ooma in a research note on Wednesday, May 27th. William Blair set a $24.00 target price on shares of Ooma in a report on Monday, August 17th. Finally, Lake Street Capital raised their target price on Ooma from $18.00 to $23.00 and gave the company a "buy" rating in a report on Wednesday, May 27th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $23.67.

Insider Activity at Ooma

In other Ooma news, CEO Eric B. Stang sold 23,212 shares of Ooma stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $20.00, for a total transaction of $464,240.00. Following the sale, the chief executive officer directly owned 795,506 shares in the company, valued at $15,910,120. The trade was a 2.84% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Shigeyuki Hamamatsu sold 27,696 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $17.64, for a total value of $488,557.44. Following the transaction, the chief financial officer owned 193,283 shares of the company's stock, valued at approximately $3,409,512.12. This trade represents a 12.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 118,652 shares of company stock worth $2,225,186 over the last ninety days. Company insiders own 9.90% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. IFC & Insurance Marketing Inc. bought a new position in Ooma during the fourth quarter worth $34,000. Tower Research Capital LLC TRC lifted its position in shares of Ooma by 225.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,620 shares of the technology company's stock worth $47,000 after buying an additional 2,507 shares during the last quarter. Royal Bank of Canada lifted its position in shares of Ooma by 24.1% in the 4th quarter. Royal Bank of Canada now owns 4,466 shares of the technology company's stock worth $53,000 after buying an additional 867 shares during the last quarter. Lazard Asset Management LLC boosted its holdings in shares of Ooma by 503.1% in the 2nd quarter. Lazard Asset Management LLC now owns 4,927 shares of the technology company's stock valued at $63,000 after buying an additional 4,110 shares during the period. Finally, Kemnay Advisory Services Inc. acquired a new position in shares of Ooma in the 4th quarter valued at about $59,000. 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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