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Bandwidth (BAND) Q3 earnings report preview: what to look for

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Cloud communications provider Bandwidth (NASDAQ: BAND) will be reporting results this Thursday before market open. Here’s what to look for.

Bandwidth beat analysts’ revenue expectations last quarter, reporting revenues of $219.9 million, up 22.2% year on year. It was a strong quarter for the company, with revenue guidance for next quarter beating analysts’ expectations and EBITDA guidance for next quarter beating analysts’ expectations.

Is Bandwidth a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Bandwidth’s revenue to grow 21.4% year on year, a reversal from the 1% decrease it recorded in the same quarter last year.

Bandwidth total revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Bandwidth rarely misses Wall Street’s revenue estimates.

Looking at Bandwidth’s peers in the software development segment, only F5 has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 13.3%.

Read our full analysis of F5’s earnings results here.

There has been positive sentiment among investors in the software development segment, with share prices up 13.6% on average over the last month. Bandwidth is down 19.3% during the same time and is heading into earnings with an average analyst price target of $66.50 (compared to the current share price of $49.25).

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