Zoom Video Communications (NASDAQ:ZM) Announces Quarterly Earnings Results, Beats Estimates By $0.23 EPS

Zoom Video Communications (NASDAQ:ZMGet Rating) announced its earnings results on Monday. The company reported $1.07 EPS for the quarter, topping the consensus estimate of $0.84 by $0.23, MarketWatch Earnings reports. The firm had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.10 billion. Zoom Video Communications had a net margin of 16.07% and a return on equity of 8.80%. The business’s quarterly revenue was up 4.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.72 EPS. Zoom Video Communications updated its Q4 guidance to $0.75-0.78 EPS.

Zoom Video Communications Stock Performance

Shares of NASDAQ ZM traded down $0.44 during trading on Wednesday, reaching $76.71. The company had a trading volume of 80,976 shares, compared to its average volume of 3,497,374. Zoom Video Communications has a 52 week low of $70.43 and a 52 week high of $235.97. The stock has a market cap of $22.83 billion, a PE ratio of 33.56, a PEG ratio of 3.13 and a beta of -0.29. The business’s 50 day moving average price is $78.58 and its 200-day moving average price is $93.66.

Insiders Place Their Bets

In other Zoom Video Communications news, insider Velchamy Sankarlingam sold 2,374 shares of the business’s stock in a transaction dated Saturday, October 8th. The shares were sold at an average price of $71.59, for a total value of $169,954.66. Following the completion of the transaction, the insider now directly owns 15,869 shares of the company’s stock, valued at $1,136,061.71. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 11.24% of the company’s stock.

Hedge Funds Weigh In On Zoom Video Communications

Institutional investors have recently modified their holdings of the stock. Global Wealth Management Investment Advisory Inc. raised its stake in shares of Zoom Video Communications by 63.3% during 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 during the last quarter. Neo Ivy Capital Management raised its stake in shares of Zoom Video Communications by 56.8% during 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 last quarter. Covestor Ltd raised its stake in shares of Zoom Video Communications by 76.7% during the first 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. Wealthfront Advisers LLC raised its stake in shares of Zoom Video Communications by 4.2% during the first quarter. Wealthfront Advisers LLC now owns 5,675 shares of the company’s stock worth $665,000 after buying an additional 229 shares during the last quarter. Finally, Meiji Yasuda Asset Management Co Ltd. raised its stake in shares of Zoom Video Communications by 3.2% during the second quarter. Meiji Yasuda Asset Management Co Ltd. now owns 7,556 shares of the company’s stock worth $816,000 after buying an additional 236 shares during the last quarter. 52.86% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Citigroup dropped their target price on shares of Zoom Video Communications from $76.00 to $72.00 and set a “sell” rating on the stock in a report on Wednesday, November 16th. Credit Suisse Group initiated coverage on shares of Zoom Video Communications in a research report on Friday, September 23rd. They issued a “neutral” rating and a $83.00 price target on the stock. BTIG Research lowered shares of Zoom Video Communications from a “buy” rating to a “neutral” rating in a research report on Tuesday, August 23rd. Wells Fargo & Company decreased their price target on shares of Zoom Video Communications from $95.00 to $80.00 and set an “equal weight” rating on the stock in a research report on Tuesday. Finally, Benchmark decreased their price target on shares of Zoom Video Communications from $118.00 to $102.00 in a research report on Tuesday. Two investment analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $121.13.

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.

Further Reading

Earnings History for Zoom Video Communications (NASDAQ:ZM)

Receive News & Ratings for Zoom Video Communications Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zoom Video Communications and related companies with MarketBeat.com's FREE daily email newsletter.