Why 8x8, Inc. Stock Plunged Today

Shares of cloud-based communications specialist 8x8 (NASDAQ: EGHT) fell as much as 30% on Friday morning, following the company's release of disappointing results for the first quarter of fiscal year 2018. As of 11:27 a.m. EDT, 8x8 shares had recovered to a milder 12% drop.

8x8's first-quarter sales rose 15% year over year, landing at $69.1 million and slightly ahead of Wall Street's $68.6 million consensus estimate. On the bottom line, adjusted net income fell from $3.4 million to $2.1 million, producing earnings of $0.02 per diluted share. Analysts had been looking for $0.03 per share.

Looking ahead, 8x8 reiterated its full-year 2018 revenue guidance of roughly $298 million but lowered the target for non-GAAP pre-tax income. That figure is now expected to be approximately $9 million, down from $24 million in the forecast offered three months ago.

Source: Fool.com