Zoom Video Communications (NASDAQ:ZM) Issues Q4 Earnings Guidance

Financial News Live · Nov 25, 2022 01:32

$Zoom Video Communications (ZM.US)$ issued an update on its fourth quarter earnings guidance on Monday morning. The company provided EPS guidance of $0.75-0.78 for the period, compared to the consensus EPS estimate of $0.82. The company issued revenue guidance of $1.095-1.105 billion, compared to the consensus revenue estimate of $1.12 billion.

Analysts Set New Price Targets

Several research firms have recently weighed in on ZM. Argus cut shares of Zoom Video Communications from a buy rating to a hold rating in a report on Friday, August 26th. KeyCorp began coverage on shares of Zoom Video Communications in a report on Monday, September 12th. They issued a sector weight rating on the stock. Stifel Nicolaus decreased their price target on shares of Zoom Video Communications from $90.00 to $80.00 in a report on Wednesday, November 9th. BTIG Research cut shares of Zoom Video Communications from a buy rating to a neutral rating in a report on Tuesday, August 23rd. Finally, Evercore ISI reduced their target price on Zoom Video Communications from $95.00 to $85.00 in a research note on Tuesday. Two equities research analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and nine have assigned a buy rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of Hold and a consensus target price of $115.86.

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Zoom Video Communications Stock Performance

Shares of NASDAQ ZM opened at $76.14 on Thursday. Zoom Video Communications has a fifty-two week low of $70.43 and a fifty-two week high of $235.97. The company has a 50 day simple moving average of $78.58 and a two-hundred day simple moving average of $93.66. The company has a market capitalization of $22.66 billion, a price-to-earnings ratio of 33.39, a P/E/G ratio of 3.01 and a beta of -0.29.

Zoom Video Communications (NASDAQ:ZM – Get Rating) last announced its earnings results on Monday, November 21st. The company reported $1.07 earnings per share for the quarter, beating analysts' consensus estimates of $0.84 by $0.23. Zoom Video Communications had a net margin of 16.07% and a return on equity of 8.80%. The business had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.10 billion. During the same quarter last year, the firm earned $0.72 earnings per share. The business's revenue for the quarter was up 4.9% on a year-over-year basis. On average, analysts forecast that Zoom Video Communications will post 1.32 earnings per share for the current fiscal year.

Insider Activity at Zoom Video Communications

In related news, insider Velchamy Sankarlingam sold 2,374 shares of the firm's stock in a transaction that occurred on Saturday, October 8th. The shares were sold at an average price of $71.59, for a total transaction of $169,954.66. Following the completion of the sale, the insider now owns 15,869 shares of the company's stock, valued at $1,136,061.71. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 11.24% of the stock is owned by insiders.

Institutional Investors Weigh In On Zoom Video Communications

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. B. Riley Wealth Advisors Inc. boosted its holdings in Zoom Video Communications by 56.4% in the third quarter. B. Riley Wealth Advisors Inc. now owns 3,181 shares of the company's stock worth $234,000 after purchasing an additional 1,147 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC purchased a new stake in Zoom Video Communications in the third quarter worth approximately $464,000. Captrust Financial Advisors boosted its holdings in Zoom Video Communications by 37.0% in the third quarter. Captrust Financial Advisors now owns 8,477 shares of the company's stock worth $624,000 after purchasing an additional 2,290 shares during the last quarter. Covington Capital Management boosted its holdings in Zoom Video Communications by 40.3% in the third quarter. Covington Capital Management now owns 992 shares of the company's stock worth $73,000 after purchasing an additional 285 shares during the last quarter. Finally, CreativeOne Wealth LLC boosted its stake in shares of Zoom Video Communications by 10.0% during the 3rd quarter. CreativeOne Wealth LLC now owns 3,463 shares of the company's stock worth $255,000 after acquiring an additional 314 shares during the last quarter. Hedge funds and other institutional investors own 52.86% of the company's stock.

About Zoom Video Communications

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Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.