Zoom Video Communications ZM is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. As of Aug. 23, 2021, Zoom had 240,744,533 outstanding shares of Class A common stock and 56,383,369 outstanding shares of Class B common stock.

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In the case of Zoom Video, the consensus sales estimate of $1.16 billion for the current quarter points to a year-over-year change of +2.3%. The $4.63 billion and $4.77 billion estimates for the current and next fiscal years indicate changes of +2.4% and +3%, respectively. Equity research can be a valuable source of information for learning about a company’s fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock. Zoom is a member of the information technology sector and operates within the software industry.

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Compared to the Zacks Consensus Estimate of $1.15 billion, the reported revenues represent a surprise of +1.22%. ZM shares are trading higher Thursday after the company https://forexanalytics.info/ posted better-than-expected second-quarter financial results on Wednesday. Zoom’s latest fiscal year (FY) was FY 2021, which ended Jan. 31, 2021.

1. For Zoom Video, the consensus sales estimate for the current quarter of $1.15 billion indicates a year-over-year change of +0.9%.
2. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries.
3. Zoom Video Communications (ZM Quick QuoteZM – Free Report) is one of the stocks most watched by Zacks.com visitors lately.
4. Zoom Video reported revenues of $1.16 billion in the last reported quarter, representing a year-over-year change of +2.1%.
5. The company highlighted strength in large accounts and reported year-over-year revenue growth of 7.1% from customers contributing more than $100,000 in the trailing 12-month period.

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Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock’s price direction in the near term, since it effectively harnesses the power of earnings estimate revisions.

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The Zacks Consensus Estimate has changed +0.4% over the last 30 days. For Zoom Video, the consensus sales estimate for the current quarter of $1.15 billion indicates a year-over-year change of +0.9%. For the current and next fiscal years, $4.62 billion and $4.78 billion estimates indicate +2% and +3.6% changes, respectively. Even though a company’s earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It’s almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company’s potential revenue growth is crucial.

For the next fiscal year, the consensus earnings estimate of $5.19 indicates a change of -1.7% from what Zoom Video is expected to report a year ago. For the current fiscal year, the consensus earnings estimate of $5.28 points to a change of +1.3% from the prior year. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.

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Without considering a stock’s valuation, no investment decision can be efficient. In predicting a stock’s future price performance, it’s crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company’s growth prospects. Zoom Video shares are climbing on heavy trading volume and trending on social media as investors digest the report. According to data from Benzinga Pro, the stock has seen more than triple its average volume change hands in the session and is trading well-above the 50-day moving average of $58.25. For the current quarter, Zoom Video is expected to post earnings of $1.21 per share, indicating a change of -9.7% from the year-ago quarter.

Zoom reported quarterly earnings of $1.39 per share and revenue of $1.16 billion, beating analyst estimates. The company highlighted strength in large accounts and reported year-over-year revenue growth of 7.1% from customers contributing more than $100,000 in the trailing 12-month period. 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.

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In addition to its strong quarterly results, the company issued third quarter EPS guidance above estimates and strong fiscal year 2025 guidance. Zoom Video Communications’ stock was trading at $71.91 at the start of the year. Since then, ZM shares have decreased by 2.7% and is now trading at $69.94. While media releases or rumors about a substantial change in a company’s business prospects usually make its stock ‘trending’ and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Zoom Video is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Top institutional shareholders of Zoom Video Communications include AQR Capital Management LLC (1.85%), Pacer Advisors Inc. (1.70%), Acadian Asset Management LLC (1.59%) and Sumitomo Mitsui Trust Holdings Inc. (1.21%). Insiders that own company stock include Santiago Subotovsky, Eric S Yuan, Velchamy Sankarlingam, Shane Crehan, Aparna Bawa, Jonathan Chadwick, Carl M Eschenbach, Ryan Azus and Kelly Steckelberg. Zoom Video is currency prediction graded B on this front, indicating that it is trading at a discount to its peers.

450 employees have rated Zoom Video Communications Chief Executive Officer Eric S. Yuan on Glassdoor.com. Eric S. Yuan has an approval rating of 97% among the company’s employees. This puts Eric S. Yuan in the top 30% of approval ratings compared to other CEOs of publicly-traded companies. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days.

For that period, the company reported net income of $672.3 million on revenue of $2.7 billion. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. Compared to the Zacks Consensus Estimate of $1.13 billion, the reported revenues represent a surprise of +1.41%. Here at Zacks, we prioritize appraising the change in the projection of a company’s future earnings over anything else. That’s because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.