Belmont, Calif.-based business communications software service provider RingCentral Inc. (RNG) rose 6% to close at $105.91 on Tuesday following the company's fourth-quarter earnings beat and strong guidance.
The company reported adjusted earnings of 23 cents a share, a nickel better than the 18 cents analysts were expecting for the period. Revenue of $188.6 million also came in ahead of Wall Street expectations of $180.9 million.
"Fourth-quarter results were outstanding, and we finished 2018 with strong momentum, capped with our first eight-figure customer deal. Our growth was driven by our mid-market and enterprise business, supported by strong contributions from channel and international," said Vlad Shmunis, RingCentral's founder, chairman and CEO. "We continue to rapidly innovate and expand our industry leading cloud communications platform that empowers enterprises to improve their business productivity and customer satisfaction."
For the current quarter, the company expects to earn between 14 cents and 16 cents a share on revenue between $191.5 million and $194.5 million. Wall Street is expecting earnings of 15 cents on revenue of $193.4 million.
For the full year, the company expects to generate revenue of between $847 million and $859 million and earnings between 69 cents and 73 cents. Wall Street is expecting the company to report results in the middle of those ranges.
Analysts at Raymond James maintained their strong buy rating on the stock Tuesday while analysts at Deutsche Bank maintained their buy rating.