Ooma (NYSE:OOMA) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Ooma shares gapped up after the company reported better-than-expected quarterly results, opening at $20.74 versus the prior close of $19.27 and trading up about 4.7%.
• The company posted EPS of $0.35, topping analysts’ estimate of $0.32, while revenue came in at $81.15 million, also above expectations.
• Ooma raised its outlook for both Q2 FY2027 and full-year FY2027, with guidance coming in above consensus and helping support the positive stock reaction.

Ooma, Inc. (NYSE:OOMA - Get Free Report) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $19.27, but opened at $20.74. Ooma shares last traded at $20.3050, with a volume of 216,433 shares traded.

The technology company reported $0.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.32 by $0.03. The firm had revenue of $81.15 million during the quarter, compared to analyst estimates of $79.84 million. Ooma had a net margin of 2.36% and a return on equity of 15.60%. Ooma has set its FY 2027 guidance at 1.290-1.340 EPS and its Q2 2027 guidance at 0.330-0.340 EPS.

Trending Headlines about Ooma

Here are the key news stories impacting Ooma this week:

• Positive Sentiment: Ooma reported fiscal Q1 EPS of $0.35, beating the $0.32 consensus, while revenue rose 25% year over year to $81.1 million and also exceeded estimates. Ooma Reports Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: The company raised its Q2 FY2027 outlook to EPS of $0.330-$0.340 and revenue of $81.6 million-$82.3 million, both above analyst expectations, signaling continued momentum. Ooma Earnings Call Transcript
• Positive Sentiment: Ooma also lifted FY2027 guidance to EPS of $1.290-$1.340 and revenue of $326.0 million-$328.5 million, ahead of consensus, which supports the stock’s stronger reaction. Ooma Reports Fiscal First Quarter 2027 Financial Results
• Neutral Sentiment: Earnings call transcripts and presentation materials were published after the results, but they mainly provide additional detail rather than a new catalyst. Ooma, Inc. NYSE: OOMA Q1 2027 Earnings Call Transcript

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on OOMA. B. Riley Financial reaffirmed a "buy" rating on shares of Ooma in a research report on Monday, May 18th. Alliance Global Partners reiterated a "buy" rating on shares of Ooma in a report on Wednesday. Benchmark reissued a "buy" rating on shares of Ooma in a research note on Wednesday. Citigroup restated a "market perform" rating on shares of Ooma in a report on Wednesday. Finally, Lake Street Capital reiterated a "buy" rating on shares of Ooma in a report on Wednesday. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $19.00.

Insider Activity at Ooma

In other news, CFO Shigeyuki Hamamatsu sold 10,790 shares of the company's stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $14.22, for a total value of $153,433.80. Following the completion of the sale, the chief financial officer owned 231,128 shares of the company's stock, valued at approximately $3,286,640.16. This represents a 4.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 9.90% of the company's stock.

Hedge Funds Weigh In On Ooma

A number of large investors have recently bought and sold shares of the business. IFC & Insurance Marketing Inc. purchased a new stake in Ooma during the fourth quarter worth $34,000. Meeder Asset Management Inc. increased its holdings in shares of Ooma by 28.3% in the 1st quarter. Meeder Asset Management Inc. now owns 3,359 shares of the technology company's stock valued at $49,000 after acquiring an additional 740 shares during the period. Tower Research Capital LLC TRC raised 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 acquiring an additional 2,507 shares in the last quarter. CWM LLC raised its position in shares of Ooma by 45.6% in the 4th quarter. CWM LLC now owns 4,400 shares of the technology company's stock worth $52,000 after acquiring an additional 1,378 shares in the last quarter. Finally, Royal Bank of Canada lifted its stake in shares of Ooma by 24.1% during the 4th quarter. Royal Bank of Canada now owns 4,466 shares of the technology company's stock worth $53,000 after purchasing an additional 867 shares during the last quarter. Institutional investors own 80.42% of the company's stock.

Ooma Stock Up 4.7%

The business has a 50 day moving average of $16.13 and a two-hundred day moving average of $13.35. The stock has a market capitalization of $555.10 million, a PE ratio of 91.55 and a beta of 1.20. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.70 and a current ratio of 0.93.

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.

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