What Should Investors Know About The Future Of RingCentral Inc’s (NYSE:RNG) Business?

RingCentral Inc’s (NYSE:RNG) latest earnings announcement in December 2017 confirmed company earnings became less negative compared to the previous year’s level as a result of recent tailwinds Below, I’ve laid out key numbers on how market analysts predict RingCentral’s earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for RingCentral

Analysts’ expectations for the coming year seems relatively unexciting, with earnings continuing to flop around in the negative territory, generating -US$25.35M in 2019. Furthermore, earnings should fall further in the following year, before bouncing back up again to -US$11.04M in 2021.

NYSE:RNG Future Profit Feb 20th 18
NYSE:RNG Future Profit Feb 20th 18

Although it’s useful to be aware of the growth year by year relative to today’s figure, it may be more beneficial evaluating the rate at which the earnings are growing on average every year. The benefit of this method is that we can get a bigger picture of the direction of RingCentral’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To calculate this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 6.70%. This means, we can anticipate RingCentral will grow its earnings by 6.70% every year for the next few years.

Next Steps:

For RingCentral, I’ve compiled three key aspects you should further examine: