Zoom Video Communications (NASDAQ:ZM) Releases Earnings Results, Beats Expectations By $0.17 EPS

Zoom Video Communications (NASDAQ:ZM – Get Rating) released its quarterly earnings results on Monday. The company reported $1.16 EPS for the quarter, beating analysts’ consensus estimates of $0.99 by $0.17, MarketWatch Earnings reports. The firm had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.08 billion. Zoom Video Communications had a net margin of 0.12% and a return on equity of 2.38%. The company’s revenue for the quarter was up 2.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.47 earnings per share. Zoom Video Communications updated its Q2 guidance to $1.04-$1.06 EPS and its FY24 guidance to $4.25-$4.31 EPS.

Zoom Video Communications Price Performance

Shares of ZM stock traded down $1.60 on Wednesday, hitting $64.05. The stock had a trading volume of 1,819,982 shares, compared to its average volume of 4,004,713. Zoom Video Communications has a 12-month low of $60.45 and a 12-month high of $124.05. The business has a 50 day moving average of $67.45 and a 200 day moving average of $71.17. The stock has a market cap of $18.82 billion, a price-to-earnings ratio of 166.07, a price-to-earnings-growth ratio of 3.85 and a beta of -0.22.

Analyst Ratings Changes

Several brokerages have recently commented on ZM. Citigroup lifted their price target on shares of Zoom Video Communications from $67.00 to $68.00 and gave the stock a “sell” rating in a research report on Wednesday, March 1st. Piper Sandler decreased their price target on shares of Zoom Video Communications from $78.00 to $76.00 in a report on Tuesday. Evercore ISI dropped their price objective on Zoom Video Communications from $85.00 to $75.00 in a research note on Tuesday. Royal Bank of Canada increased their price target on Zoom Video Communications from $85.00 to $95.00 and gave the stock an “outperform” rating in a report on Wednesday, February 8th. Finally, Rosenblatt Securities initiated coverage on shares of Zoom Video Communications in a report on Thursday, March 23rd. They set a “neutral” rating and a $75.00 target price on the stock. One research analyst has rated the stock with a sell rating, seventeen have issued a hold rating and five have assigned a buy rating to the stock. According to MarketBeat, Zoom Video Communications presently has an average rating of “Hold” and an average target price of $88.39.

Insider Activity

In other Zoom Video Communications news, COO Aparna Bawa sold 7,000 shares of the company’s stock in a transaction dated Tuesday, April 4th. The shares were sold at an average price of $73.24, for a total transaction of $512,680.00. Following the sale, the chief operating officer now directly owns 42,639 shares of the company’s stock, valued at $3,122,880.36. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. In other news, COO Aparna Bawa sold 7,000 shares of the business’s stock in a transaction dated Tuesday, April 4th. The stock was sold at an average price of $73.24, for a total transaction of $512,680.00. Following the completion of the transaction, the chief operating officer now owns 42,639 shares of the company’s stock, valued at $3,122,880.36. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Kelly Steckelberg sold 3,224 shares of the firm’s stock in a transaction dated Monday, March 13th. The shares were sold at an average price of $68.32, for a total value of $220,263.68. The disclosure for this sale can be found here. Insiders sold a total of 103,893 shares of company stock valued at $7,116,654 over the last three months. Corporate insiders own 11.28% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ZM. Money Concepts Capital Corp lifted its stake in shares of Zoom Video Communications by 821.2% in the 4th quarter. Money Concepts Capital Corp now owns 479 shares of the company’s stock worth $32,000 after purchasing an additional 427 shares during the period. Global Wealth Management Investment Advisory Inc. increased its position in Zoom Video Communications by 63.3% in the first quarter. Global Wealth Management Investment Advisory Inc. now owns 294 shares of the company’s stock worth $34,000 after buying an additional 114 shares in the last quarter. Neo Ivy Capital Management raised its stake in shares of Zoom Video Communications by 56.8% in the second quarter. Neo Ivy Capital Management now owns 367 shares of the company’s stock worth $39,000 after buying an additional 133 shares during the period. Covestor Ltd increased its holdings in Zoom Video Communications by 76.7% in the 1st quarter. Covestor Ltd now owns 394 shares of the company’s stock worth $46,000 after acquiring an additional 171 shares in the last quarter. Finally, Covington Capital Management lifted its holdings in Zoom Video Communications by 40.3% during the third quarter. Covington Capital Management now owns 992 shares of the company’s stock valued at $73,000 after purchasing an additional 285 shares in the last quarter. Hedge funds and other institutional investors own 52.96% of the company’s stock.

About Zoom Video Communications

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Zoom Video Communications, Inc engages in the provision of video-first communications platform. The firm offers meetings, chat, rooms and workspaces, phone systems, video webinars, marketplace, and developer platform products. It serves the education, finance, government, and healthcare industries. Its platform helps people to connect through voice, chat, content sharing, and face-to-face video experiences.