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

Zoom Video Communications (NASDAQ:ZM – Get Rating) issued its quarterly earnings results on Monday. The company reported $1.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.99 by $0.17, MarketWatch Earnings reports. Zoom Video Communications had a return on equity of 2.38% and a net margin of 0.12%. The company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.08 billion. During the same quarter last year, the company posted $0.47 EPS. The company’s revenue for the quarter was up 2.9% compared to the same quarter last year. 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 Stock Performance

ZM traded down $1.39 during midday trading on Wednesday, reaching $64.26. 1,102,129 shares of the company were exchanged, compared to its average volume of 3,996,867. The company’s fifty day moving average price is $67.45 and its 200 day moving average price is $71.17. The company has a market cap of $18.88 billion, a price-to-earnings ratio of 166.07, a price-to-earnings-growth ratio of 3.85 and a beta of -0.22. Zoom Video Communications has a one year low of $60.45 and a one year high of $124.05.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on ZM shares. Stifel Nicolaus decreased their price target on Zoom Video Communications to $75.00 in a research note on Friday, March 3rd. Benchmark reiterated a “buy” rating and issued a $102.00 price target on shares of Zoom Video Communications in a research note on Tuesday, February 28th. Mizuho reissued a “buy” rating and set a $100.00 price objective on shares of Zoom Video Communications in a report on Tuesday, February 28th. Rosenblatt Securities started coverage on Zoom Video Communications in a report on Thursday, March 23rd. They set a “neutral” rating and a $75.00 price objective on the stock. Finally, Moffett Nathanson raised Zoom Video Communications from an “underperform” rating to a “market perform” rating and set a $85.00 price objective on the stock in a report on Tuesday. One research analyst has rated the stock with a sell rating, seventeen have issued a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, Zoom Video Communications presently has an average rating of “Hold” and an average price target of $88.39.

Insiders Place Their Bets

In other Zoom Video Communications news, CFO Kelly Steckelberg sold 3,224 shares of the business’s stock in a transaction that occurred on Wednesday, March 1st. The stock was sold at an average price of $70.97, for a total transaction of $228,807.28. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In other news, COO Aparna Bawa sold 7,000 shares of the company’s stock in a transaction that occurred on Tuesday, April 4th. The stock was sold at an average price of $73.24, for a total value of $512,680.00. Following the completion of the transaction, 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 filing with the SEC, which is accessible through this hyperlink. Also, CFO Kelly Steckelberg sold 3,224 shares of the company’s stock in a transaction that occurred on Wednesday, March 1st. The shares were sold at an average price of $70.97, for a total value of $228,807.28. The disclosure for this sale can be found here. In the last ninety days, insiders sold 103,893 shares of company stock valued at $7,116,654. Corporate insiders own 11.28% of the company’s stock.

Hedge Funds Weigh In On Zoom Video Communications

Institutional investors have recently bought and sold shares of the company. BlackRock Inc. lifted its position in shares of Zoom Video Communications by 0.8% during the first quarter. BlackRock Inc. now owns 12,837,056 shares of the company’s stock worth $947,888,000 after acquiring an additional 104,955 shares in the last quarter. Renaissance Technologies LLC lifted its position in shares of Zoom Video Communications by 61.0% during the first quarter. Renaissance Technologies LLC now owns 6,449,306 shares of the company’s stock worth $756,052,000 after acquiring an additional 2,444,294 shares in the last quarter. State Street Corp lifted its position in shares of Zoom Video Communications by 1.9% during the third quarter. State Street Corp now owns 5,040,839 shares of the company’s stock worth $370,955,000 after acquiring an additional 92,841 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Zoom Video Communications by 1.3% during the first quarter. Geode Capital Management LLC now owns 3,218,518 shares of the company’s stock worth $237,451,000 after acquiring an additional 40,454 shares in the last quarter. Finally, First Trust Advisors LP lifted its position in shares of Zoom Video Communications by 12.4% during the first quarter. First Trust Advisors LP now owns 2,452,935 shares of the company’s stock worth $181,125,000 after acquiring an additional 270,970 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.