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

Zoom Video Communications (NASDAQ:ZM) updated its third quarter earnings guidance on Wednesday. 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 FY25 guidance to $5.29-5.32 EPS.

Zoom Video Communications Stock Performance

ZM traded up $1.10 during trading on Wednesday, hitting $60.23. 6,011,802 shares of the stock were exchanged, compared to its average volume of 3,195,005. The firm has a 50 day simple moving average of $58.09 and a 200 day simple moving average of $61.78. The firm has a market cap of $18.63 billion, a price-to-earnings ratio of 22.25, a P/E/G ratio of 8.91 and a beta of -0.05. Zoom Video Communications has a 1 year low of $55.06 and a 1 year high of $75.90.

Zoom Video Communications (NASDAQ:ZM) last posted its earnings results on Monday, May 20th. The company reported $0.74 EPS for the quarter, beating analysts’ consensus estimates of $0.51 by $0.23. Zoom Video Communications had a net margin of 18.37% and a return on equity of 10.55%. The business had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.13 billion. As a group, equities analysts anticipate that Zoom Video Communications will post 2.43 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on ZM. Evercore ISI cut their price objective on shares of Zoom Video Communications from $72.00 to $70.00 and set an in-line rating on the stock in a research report on Tuesday, May 21st. UBS Group raised shares of Zoom Video Communications to a hold rating in a research report on Friday, July 26th. Robert W. Baird cut their price objective on shares of Zoom Video Communications from $90.00 to $84.00 and set an outperform rating on the stock in a research report on Tuesday, May 21st. Royal Bank of Canada reaffirmed an outperform rating and issued a $95.00 price objective on shares of Zoom Video Communications in a research report on Tuesday, May 21st. Finally, Stifel Nicolaus cut their price objective on shares of Zoom Video Communications from $70.00 to $65.00 and set a hold rating on the stock in a research report on Tuesday, May 21st. Two research analysts have rated the stock with a sell rating, twelve have given a hold rating and six have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of Hold and a consensus target price of $75.22.

Insider Activity

In other news, CEO Eric S. Yuan sold 37,810 shares of the company’s stock in a transaction on Tuesday, July 9th. The shares were sold at an average price of $57.14, for a total value of $2,160,463.40. Following the sale, the chief executive officer now directly owns 113,684 shares of the company’s stock, valued at approximately $6,495,903.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, CEO Eric S. Yuan sold 37,810 shares of the business’s stock in a transaction on Tuesday, July 9th. The shares were sold at an average price of $57.14, for a total value of $2,160,463.40. Following the completion of the transaction, the chief executive officer now directly owns 113,684 shares in the company, valued at approximately $6,495,903.76. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Kelly Steckelberg sold 5,007 shares of the business’s stock in a transaction on Wednesday, May 29th. The shares were sold at an average price of $61.58, for a total transaction of $308,331.06. The disclosure for this sale can be found here. Insiders have sold 118,629 shares of company stock valued at $6,887,868 in the last ninety days. Insiders own 10.78% of the company’s stock.

About Zoom Video Communications

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.