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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’s Earnings Top Expectations as Enterprise Revenue Climbs
Zoom Video’s growth is well-positioned to accelerate due to the andrey malahov – forexarticles increasing trend of remote work and reduced business travel spending. Zoom Video Communications raised its forecast for fiscal 2025 revenue on Monday, anticipating robust demand for its online video conferencing software as it expands its product portfolio, and clients … © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
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.
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 Set to Report Q3 Earnings: What’s in the Cards?
The Zacks Consensus Estimate for the top line is currently pegged at $1.16 billion, indicating growth of 2.34% from the year-ago quarter.Non-GAAP earnings per share are expected in the range of $1.29-$1.31. The consensus mark for earnings has remained steady at limefx $1.31 per share over the past 30 days, indicating growth of 1.55% year over year. Admittedly, investors like Ark Invest may have to adjust their expectations. With 2026 just two years away, Ark Invest’s base case estimates are looking increasingly unlikely to come to pass, and it may even fall short of the $700-per-share bear case estimate.
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 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.
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- Between the AI tool and its expected growth in hybrid and remote knowledge workers, Ark Invest believes Zoom’s average revenue per user (ARPU) will grow by 26% yearly.
- Zoom reported quarterly earnings of $1.39 per share and revenue of $1.16 billion, beating analyst estimates.
- With 2026 just two years away, Ark Invest’s base case estimates are looking increasingly unlikely to come to pass, and it may even fall short of the $700-per-share bear case estimate.
- The Motley Fool has positions in and recommends Zoom Video Communications.
Zoom Stock Falls After Earnings. Now Might Be the Time to Buy.
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.
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%.
Should You Buy Autodesk Stock After Earnings?
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 joining Benzinga Edge. Sign up for MarketBeat All Access to gain access to MarketBeat’s full suite of research tools.
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.
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. 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 Best oil stock 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.