RingCentral falls on disappointing forecasts

RingCentral

08/08/2023 17:59

** Cloud communication provider RingCentral's  RNG.N  shares
down 16.5% at $32.54
    ** Co sees Q3 adj. EPS in the range of $0.75 to $0.78, below
analysts' est. of $0.82- Refinitiv 
    ** Co maintains 2023 total revenue forecast in range of
$2.187 bln-$2.205 bln, midpoint below analysts' est. of $2.20
bln
    ** Co also reiterates annual adj. EPS in the range of $3.11
to $3.25, midpoint again below analysts' est. of $3.23
    ** Q2 revenue, adj. profit, however, were ahead of street
expectations
    ** Company names Tarek Robbiati as CEO, effective Aug. 28;
Robbiati joins RNG from Hewlett Packard Enterprise  HPE.N 
    ** Robbiati succeeds Vlad Shmunis, who will transition to
role of executive chairman
    ** Brokerage Craig-Hallum downgrades stock to "hold" from
"buy"; says RNG is profit focused but with a much slower growth
engine, it does not appear to have the competitive advantage it
once had, Microsoft  MSFT.O  has grabbed that mantle
    ** RingCentral shares down 6.9% YTD

 (Reporting by Rupali Chaudhary in Bengaluru)
 ((Rupali.chaudhary@thomsonreuters.com))