Zoom Video Communications (NASDAQ:ZM) Updates FY 2023 Earnings Guidance

Zoom Video Communications (NASDAQ:ZMGet Rating) updated its FY 2023 earnings guidance on Tuesday. The company provided earnings per share guidance of $3.66-$3.69 for the period, compared to the consensus earnings per share estimate of $3.82. The company issued revenue guidance of $4.38 billion-$4.39 billion, compared to the consensus revenue estimate of $4.54 billion. Zoom Video Communications also updated its Q3 2023 guidance to $0.82-$0.83 EPS.

Analyst Ratings Changes

Several research analysts recently issued reports on ZM shares. Credit Suisse Group started coverage on shares of Zoom Video Communications in a report on Friday. They set a neutral rating and a $83.00 target price for the company. Morgan Stanley cut their price objective on shares of Zoom Video Communications from $140.00 to $130.00 and set an overweight rating for the company in a report on Tuesday, August 23rd. Daiwa Capital Markets raised shares of Zoom Video Communications from an underperform rating to an outperform rating and lifted their price objective for the company from $107.00 to $121.00 in a report on Monday, May 30th. MKM Partners cut their price objective on shares of Zoom Video Communications from $135.00 to $125.00 and set a buy rating for the company in a report on Tuesday, August 23rd. Finally, Stifel Nicolaus cut their price objective on shares of Zoom Video Communications from $120.00 to $90.00 in a report on Tuesday, August 23rd. Two research analysts have rated the stock with a sell rating, seventeen have given a hold rating and twelve have given a buy rating to the stock. According to MarketBeat, Zoom Video Communications has a consensus rating of Hold and an average price target of $136.03.

Zoom Video Communications Stock Performance

Shares of Zoom Video Communications stock traded down $0.78 on Friday, reaching $73.76. The company had a trading volume of 133,455 shares, compared to its average volume of 4,328,349. The firm’s 50 day moving average price is $94.49 and its two-hundred day moving average price is $103.06. The firm has a market cap of $21.95 billion, a PE ratio of 23.08, a PEG ratio of 4.18 and a beta of -0.49. Zoom Video Communications has a 52-week low of $74.33 and a 52-week high of $291.31.

Zoom Video Communications (NASDAQ:ZMGet Rating) last announced its earnings results on Monday, August 22nd. The company reported $1.05 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.11. Zoom Video Communications had a net margin of 23.05% and a return on equity of 11.87%. The firm had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.12 billion. During the same period in the prior year, the firm earned $0.98 EPS. The firm’s revenue for the quarter was up 7.6% on a year-over-year basis. As a group, sell-side analysts predict that Zoom Video Communications will post 1.3 EPS for the current year.

Insider Buying and Selling at Zoom Video Communications

In other Zoom Video Communications news, COO Aparna Bawa sold 2,000 shares of the stock in a transaction that occurred on Tuesday, June 28th. The shares were sold at an average price of $116.62, for a total value of $233,240.00. Following the sale, the chief operating officer now directly owns 77,676 shares of the company’s stock, valued at approximately $9,058,575.12. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. In other Zoom Video Communications news, COO Aparna Bawa sold 2,000 shares of the stock in a transaction that occurred on Tuesday, June 28th. The shares were sold at an average price of $116.62, for a total value of $233,240.00. Following the sale, the chief operating officer now directly owns 77,676 shares of the company’s stock, valued at approximately $9,058,575.12. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Kelly Steckelberg sold 6,700 shares of the company’s stock in a transaction on Monday, August 1st. The shares were sold at an average price of $105.46, for a total transaction of $706,582.00. The disclosure for this sale can be found here. In the last three months, insiders have sold 32,823 shares of company stock valued at $3,526,086. Insiders own 11.24% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Global Wealth Management Investment Advisory Inc. boosted its stake in Zoom Video Communications by 63.3% during the 1st quarter. Global Wealth Management Investment Advisory Inc. now owns 294 shares of the company’s stock worth $34,000 after purchasing an additional 114 shares during the period. Neo Ivy Capital Management raised its position in Zoom Video Communications by 56.8% during the 2nd 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 last quarter. Covestor Ltd raised its position in Zoom Video Communications by 76.7% during the 1st quarter. Covestor Ltd now owns 394 shares of the company’s stock worth $46,000 after buying an additional 171 shares during the last quarter. Fund Management at Engine No. 1 LLC purchased a new position in shares of Zoom Video Communications in the 1st quarter valued at about $216,000. Finally, Echo Street Capital Management LLC increased its holdings in shares of Zoom Video Communications by 80.4% in the 1st quarter. Echo Street Capital Management LLC now owns 2,091 shares of the company’s stock valued at $245,000 after purchasing an additional 932 shares in the last quarter. Institutional investors and hedge funds own 52.86% of the company’s stock.

Zoom Video Communications Company Profile

(Get Rating)

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.

See Also

Earnings History and Estimates for Zoom Video Communications (NASDAQ:ZM)

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