Zacks Research Has Bearish Outlook for Bandwidth Q2 Earnings

Key Points

• Zacks Research has lowered its Q2 2027 earnings estimate for Bandwidth to $0.14 per share, down from $0.17, with a full-year consensus estimate at $0.22 per share.
• During its last quarterly earnings report, Bandwidth achieved $0.38 EPS, surpassing expectations of $0.32, and reported a revenue of $180.01 million, up 3.4% from the previous year.
• Bandwidth has a consensus rating of “Moderate Buy” from analysts, with five holding a buy rating and a price target averaging $20.80 per share.

Bandwidth Inc. (NASDAQ:BAND - Free Report) - Stock analysts at Zacks Research decreased their Q2 2027 EPS estimates for shares of Bandwidth in a research report issued to clients and investors on Thursday, September 18th. Zacks Research analyst Team now expects that the company will post earnings per share of $0.14 for the quarter, down from their previous forecast of $0.17. The consensus estimate for Bandwidth's current full-year earnings is $0.22 per share.

Bandwidth (NASDAQ:BAND - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.32 by $0.06. Bandwidth had a negative net margin of 1.32% and a positive return on equity of 1.43%. The firm had revenue of $180.01 million during the quarter, compared to the consensus estimate of $178.87 million. During the same period last year, the firm earned $0.29 EPS. The business's quarterly revenue was up 3.4% compared to the same quarter last year. Bandwidth has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS.

Several other equities research analysts have also issued reports on the stock. Wall Street Zen upgraded shares of Bandwidth from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Wedbush reiterated an "outperform" rating on shares of Bandwidth in a research report on Wednesday, September 17th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $20.00 target price on shares of Bandwidth in a research report on Friday, June 13th. Five investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $20.80.

Bandwidth Price Performance

Bandwidth stock traded up $0.43 during mid-day trading on Friday, hitting $17.97. 239,967 shares of the company traded hands, compared to its average volume of 289,146. Bandwidth has a one year low of $11.33 and a one year high of $23.00. The stock has a market cap of $541.63 million, a price-to-earnings ratio of -52.85 and a beta of 1.81. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.31 and a current ratio of 1.31. The stock has a fifty day moving average price of $15.04 and a 200-day moving average price of $14.35.

Insider Activity at Bandwidth

In other news, COO Devesh Agarwal sold 1,745 shares of the firm's stock in a transaction dated Friday, August 29th. The shares were sold at an average price of $15.09, for a total transaction of $26,332.05. Following the sale, the chief operating officer owned 67,263 shares of the company's stock, valued at $1,014,998.67. This trade represents a 2.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Devin M. Krupka sold 7,166 shares of the firm's stock in a transaction dated Wednesday, September 17th. The shares were sold at an average price of $18.00, for a total transaction of $128,988.00. Following the sale, the insider directly owned 19,192 shares in the company, valued at approximately $345,456. The trade was a 27.19% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 73,077 shares of company stock valued at $1,139,601. 6.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Bandwidth

Institutional investors have recently made changes to their positions in the business. Allspring Global Investments Holdings LLC lifted its stake in shares of Bandwidth by 53.9% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 21,876 shares of the company's stock worth $287,000 after purchasing an additional 7,661 shares during the period. CWM LLC lifted its stake in shares of Bandwidth by 326.8% in the 1st quarter. CWM LLC now owns 7,460 shares of the company's stock worth $98,000 after purchasing an additional 5,712 shares during the period. Two Sigma Investments LP lifted its stake in shares of Bandwidth by 8.9% in the 4th quarter. Two Sigma Investments LP now owns 108,338 shares of the company's stock worth $1,844,000 after purchasing an additional 8,813 shares during the period. Nuveen LLC bought a new position in shares of Bandwidth in the 1st quarter worth approximately $7,916,000. Finally, AQR Capital Management LLC raised its stake in Bandwidth by 303.1% during the 1st quarter. AQR Capital Management LLC now owns 393,907 shares of the company's stock worth $5,160,000 after acquiring an additional 296,199 shares during the period. Institutional investors own 68.53% of the company's stock.

Bandwidth Company Profile

Bandwidth is a leading enterprise cloud communications company. Companies like Cisco, Google, Microsoft, RingCentral, Uber, and Zoom use Bandwidth's APIs to easily embed voice, messaging, and emergency services into software and applications. Bandwidth is the first and only CPaaS provider offering a robust selection of communications APIs built around their own IP voice network.