What’s Going On With Zoom Video Stock After Earnings? Zoom Video Comms NASDAQ:ZM

This might have led to a loss in small and medium-sized business customers, which Blue chip stock list is likely to have hurt top-line growth.International expansion has been causing cost escalations in the form of development expenses. This trend is likely to have continued in the to-be-reported quarter as the company plans to add local sales support in international markets. Zoom reported quarterly earnings of $1.39 per share and revenue of $1.16 billion, beating analyst estimates. The company highlighted strength in large accounts and reported year-over-year revenue growth of 7.1% from customers contributing more than $100,000 in the trailing 12-month period. For the first quarter, Zoom is guiding for sales to come in at roughly $1.13 billion. Management’s revenue target for the period was roughly in line with the average Wall Street analyst target, but its profit target beat expectations.

Also, 3% revenue growth will probably not inspire growth-oriented investors. Multiple analysts have weighed in on Zoom shares in recent weeks leading up to earnings. Rosenblatt analyst Catharine Trebnick maintained Zoom with a Buy rating and price target of $78.

ZM Stock News Headlines

Equity research can be a valuable source of information for learning about a company’s fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock. In the company’s most-recent quarter, Zoom reported earnings of $1.39 per share, beating the estimate of $1.21 by 14.88%. Revenue came in at $1.16 billion, exceeding expectations and reflecting a 2.09% increase year-over-year.

Zoom published its fourth-quarter earnings results after the market closed yesterday and delivered a profit that came in far better than Wall Street had anticipated. Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. 1 analysts have bearish recommendations on Zoom Video, while 3 analysts have bullish ratings. The street high price target from Benchmark is $83, while the street low from Wells Fargo is $55. Zoom Communications shares tumbled nearly 11% before the bell on Tuesday, as its forecast for low single-digit annual revenue growth disappointed investors after a recent rally.

Zoom Video shares have gained nearly 24% since the company last reported earnings. The stock is currently trading at new 52-week highs ahead of earnings. Zoom’s latest fiscal year (FY) was FY 2021, which ended Jan. 31, 2021. For that period, the company reported net income of $672.3 million on revenue of $2.7 billion. Zoom’s stock has surged 46.80% since summer, driven by strong Q earnings, signaling a profitable turnaround.

To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Here are some stocks, which according to our model, have the right combination of elements.Fortinet (FTNT Quick QuoteFTNT – Free Report) has an Earnings ESP of +4.78% and carries a Zacks computer vision libraries Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for the company’s long-term earnings is pegged at $17.8 per share. The company’s fiscal third-quarter performance is likely to have benefited from enhancements in its products, such as Zoom Video Webinars, Visitor Management, Workplace Reservation and Zoom Rooms.

Rivals also include bundled productivity solution providers with video functionality such as Alphabet Inc.’s (GOOGL) Google G Suite and Microsoft Inc.’s (MSFT) Microsoft Teams. Other competitors are unified communications as a service (UCaaS) and legacy private bank exchange (PBX) providers such as 8×8 Inc. (EGHT), Avaya Holdings Corp. (AVYA), and RingCentral Inc. (RNG). Zoom expects full-year revenue of $4.656 billion to $4.661 billion versus estimates of $4.64 billion. Full-year earnings are expected to be between $5.41 and $5.43 per share versus estimates of $5.35 per share. Enterprise revenue was up 5.8% year-over-year, while online revenue was flat year-over-year.

Zoom Video Communications, Inc. (ZM)

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California. ZM’s increasing range of solutions is expected to have contributed to customer growth.

analyst rating

• This might have led to a loss in small and medium-sized business customers, which is likely to have hurt top-line growth.International expansion has been causing cost escalations in the form of development expenses.
• The Zacks Consensus Estimate for customers contributing more than $100,000 in revenues is currently pegged at 4,042 for the third quarter fiscal 2025.
• Equity research can be a valuable source of information for learning about a company’s fundamentals.
• The consensus mark for earnings has remained steady at $1.31 per share over the past 30 days, indicating growth of 1.55% year over year.
• You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.

Zoom’s new Webinar’s capability to host 1 million attendees demonstrates scalability and is expected to drive the top line and active user growth in the third quarter of fiscal 2025. In addition to better-than-expected Q4 performance and forward guidance, Zoom also announced a substantial stock repurchasing initiative. The company announced that its board of directors had approved up to $1.5 billion in new stock buybacks. The move likely signals that the board believes that shares are undervalued, and the repurchasing initiative should increase the company’s earnings per share.

Zoom Video Communications, Inc. (ZM): Rebranded as AI-First Platform, Earns Outperform Rating with $115 Price Target

The one area of modest strength is non-GAAP (adjusted) free cash flow, which increased almost 14% yearly to more than $1.1 billion in the first three quarters of 2023. That was not enough to persuade investors to buy Zoom stock, as it is up just 1% from year-ago levels. Admittedly, the company’s results have come nowhere close to matching that expected growth. In the first nine months of 2023, revenue of $3.4 billion increased by only 3% yearly. And yet the business performed solidly throughout the past few years even as the stock fell. Shares of Zoom Video Communications have an average 1-year price target of $72, representing an expected upside of 7.95%.

Sort by estimates, projected upside, profit surprises, and more to easily find new stocks to invest in or check up on your portfolio. Zoom Video’s stock price has bounced back in the past few months as investors continue to see it as an undervalued company. After dropping to $55.12 in August, the stock has jumped by over 47% to $81…. Zoom had more profit and revenue than analysts had expected in the quarter, and executives pushed up the company’s full-year forecast. Zoom Video Communications scored higher than 86% of companies evaluated by MarketBeat, and ranked 176th out of 644 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Prior to founding Zoom, Yuan was corporate vice president of engineering at Cisco, and was a founding engineer and vice president of engineering for web and videoconferencing platform Webex. Click to unlock major analysts’ bullish and bearish positions by full maxitrade review: can you trust a brokerage firm joining Benzinga Edge. Sign up for MarketBeat All Access to gain access to MarketBeat’s full suite of research tools.