Zoom Video Communications (NASDAQ:ZM) Issues Q3 Earnings Guidance

Zoom Video Communications (NASDAQ:ZM) updated its third quarter earnings guidance on Wednesday morning. The company provided EPS guidance of $1.29-1.31 for the period, compared to the consensus EPS estimate of $1.23. The company issued revenue guidance of $1.160-1.165 billion, compared to the consensus revenue estimate of $1.16 billion. Zoom Video Communications also updated its FY 2025 guidance to 5.290-5.320 EPS.

Zoom Video Communications Stock Performance

NASDAQ:ZM opened at $70.14 on Friday. The firm has a market capitalization of $21.69 billion, a PE ratio of 26.17, a PEG ratio of 10.44 and a beta of -0.05. The stock’s fifty day moving average is $58.53 and its 200 day moving average is $61.86. Zoom Video Communications has a fifty-two week low of $55.06 and a fifty-two week high of $75.90.

Zoom Video Communications (NASDAQ:ZM) last announced its earnings results on Wednesday, August 21st. The company reported $1.39 earnings per share for the quarter, beating the consensus estimate of $1.21 by $0.18. Zoom Video Communications had a net margin of 19.08% and a return on equity of 10.97%. The business had revenue of $1.16 billion for the quarter, compared to the consensus estimate of $1.15 billion. During the same quarter in the prior year, the firm posted $0.55 earnings per share. The business’s revenue for the quarter was up 2.1% on a year-over-year basis. Equities analysts forecast that Zoom Video Communications will post 2.43 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on ZM shares. Piper Sandler cut their target price on Zoom Video Communications from $72.00 to $68.00 and set a neutral rating on the stock in a research note on Wednesday, July 10th. Benchmark reiterated a buy rating and issued a $83.00 target price on shares of Zoom Video Communications in a research note on Monday, August 5th. Royal Bank of Canada reissued an outperform rating and set a $95.00 target price on shares of Zoom Video Communications in a research note on Tuesday, May 21st. Needham & Company LLC reaffirmed a hold rating on shares of Zoom Video Communications in a research note on Thursday. Finally, Morgan Stanley dropped their target price on shares of Zoom Video Communications from $72.00 to $68.00 and set an equal weight rating on the stock in a research note on Friday, June 14th. Two analysts have rated the stock with a sell rating, fourteen have issued a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of Hold and a consensus target price of $75.10.

Insider Activity

In other Zoom Video Communications news, COO Aparna Bawa sold 874 shares of the stock in a transaction dated Tuesday, June 4th. The stock was sold at an average price of $61.78, for a total value of $53,995.72. Following the sale, the chief operating officer now owns 2,814 shares of the company’s stock, valued at approximately $173,848.92. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other Zoom Video Communications news, COO Aparna Bawa sold 874 shares of the firm’s stock in a transaction on Tuesday, June 4th. The stock was sold at an average price of $61.78, for a total value of $53,995.72. Following the sale, the chief operating officer now directly owns 2,814 shares in the company, valued at $173,848.92. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Eric S. Yuan sold 2,420 shares of the company’s stock in a transaction dated Monday, June 3rd. The stock was sold at an average price of $61.80, for a total value of $149,556.00. Following the transaction, the chief executive officer now directly owns 85,460 shares of the company’s stock, valued at $5,281,428. The disclosure for this sale can be found here. Over the last three months, insiders have sold 123,642 shares of company stock worth $7,187,144. Corporate insiders own 10.78% of the company’s stock.

Zoom Video Communications Company Profile

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.