What's Going On With Zoom Video Stock Today?
Shares of Zoom Video Communications, Inc. ZM are trading higher Monday. The company is set to release earnings results after the market close. Here’s what you need to know.
What To Know: Zoom Video is due to report third-quarter financial results for fiscal 2025 after the bell. Analysts expect the company to report earnings of $1.31 per share for the quarter, up from $1.29 per share a year ago. Revenue is projected at $1.16 billion, compared to $1.14 billion in the same period last year, according to Benzinga Pro.
In the company’s most-recent quarter, Zoom reported earnings of $1.39 per share, beating the estimate of $1.21 by 14.88%. Revenue came in at $1.16 billion, exceeding expectations and reflecting a 2.09% increase year-over-year.
“In Q2, we outperformed our guidance across the board and grew operating cash flow and free cash flow by 33.7% and 26.2% year over year, respectively, demonstrating our continued commitment to efficient growth,” Zoom CEO Eric Yuan said last quarter.
“We also saw strength in large accounts, with customers contributing more than $100,000 in trailing 12 months revenue increasing by 7.1% year over year, and resilience in our Online business, with Online average monthly churn reaching its lowest ever rate.”
Zoom Video shares have gained nearly 24% since the company last reported earnings. The stock is currently trading at new 52-week highs ahead of earnings. Zoom Video has a 52-week low of $55.06, according to Benzinga Pro.
Multiple analysts have weighed in on Zoom shares in recent weeks leading up to earnings. Rosenblatt analyst Catharine Trebnick maintained Zoom with a Buy rating and price target of $78. Morgan Stanley analyst Meta Marshall maintained an Equal-Weight rating and raised the price target from $68 to $86.
ZM Price Action: Zoom shares were up 3.57% at $88.96 at the time of publication, according to Benzinga Pro.
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