How does RNG's EPS trend look for 2025?
4/5/2025 05:22pm
**RingCentral's (RNG) EPS trend for 2025 is expected to show a positive trajectory**, with several points indicating strong financial performance and potential for growth:
1. **Consistent Performance**: RNG has consistently exceeded the Zacks EPS Consensus in every quarter since going public in 2013. This track record suggests a strong earnings trend.
2. **Growth in EPS**: The company's adjusted EPS increased by 14% to $3.70 for the full year 2024, which is a positive indicator of improving earnings power.
3. **Future Outlook**: RNG provides EPS guidance for 2025, with a midpoint of approximately $4.13 to $4.27, representing a 14% growth from the previous year. This guidance supports the notion of a strong EPS trend.
4. **Operational Strength**: RNG's operational performance has been effective, as evidenced by its ability to triple operating profit since 2021 and reach or exceed EPS expectations every quarter. This operational efficiency is likely to translate into continued EPS growth.
5. **Cash Flow Strength**: The company's strong cash flow, which has tripled since 2021, is a positive sign for its financial health and its ability to support growth initiatives, including AI initiatives. Strong cash flow is often correlated with a company's ability to generate earnings.
6. **Market Position**: RNG's leading position in the contact center software-as-a-service (SaaS) solutions market, with robust product offerings and integrations, positions it well for continued market share gains and revenue growth, which should support EPS growth.
In conclusion, RNG's EPS trend for 2025 is likely to be positive, driven by the company's strong financial performance, growth initiatives, and favorable market positioning.