There's been a notable change in appetite for ZoomInfo Technologies Inc. (NASDAQ:ZI) shares in the week since its third-quarter report, with the stock down 10% to US$10.58. It looks like a credible result overall - although revenues of US$304m were what the analysts expected, ZoomInfo Technologies surprised by delivering a (statutory) profit of US$0.07 per share, an impressive 49% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the 23 analysts covering ZoomInfo Technologies provided consensus estimates of US$1.19b revenue in 2025, which would reflect a measurable 2.3% decline over the past 12 months. Statutory earnings per share are predicted to surge 1,307% to US$0.37. Before this earnings report, the analysts had been forecasting revenues of US$1.21b and earnings per share (EPS) of US$0.38 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$11.74, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on ZoomInfo Technologies, with the most bullish analyst valuing it at US$17.24 and the most bearish at US$7.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 1.8% annualised decline to the end of 2025. That is a notable change from historical growth of 29% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 11% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ZoomInfo Technologies is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ZoomInfo Technologies' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$11.74, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ZoomInfo Technologies analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 3 warning signs for ZoomInfo Technologies that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
