Zoom Video Communications (NASDAQ:ZM) Issues Q3 2023 Earnings Guidance

Zoom Video Communications (NASDAQ:ZMGet Rating) issued an update on its third quarter 2023 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of $0.82-$0.83 for the period, compared to the consensus estimate of $0.92. The company issued revenue guidance of $1.09 billion-$1.10 billion, compared to the consensus revenue estimate of $1.15 billion. Zoom Video Communications also updated its FY 2023 guidance to $3.66-$3.69 EPS.

Zoom Video Communications Stock Performance

Shares of Zoom Video Communications stock traded down $0.80 during mid-day trading on Friday, hitting $73.74. 130,823 shares of the stock were exchanged, compared to its average volume of 4,328,349. Zoom Video Communications has a 12 month low of $74.33 and a 12 month high of $291.31. The company has a market capitalization of $21.95 billion, a P/E ratio of 23.08, a P/E/G ratio of 4.18 and a beta of -0.49. The company has a 50-day simple moving average of $94.49 and a 200 day simple moving average of $103.06.

Zoom Video Communications (NASDAQ:ZMGet Rating) last posted its quarterly 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 business had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.12 billion. During the same period in the previous year, the firm posted $0.98 earnings per share. The firm’s revenue for the quarter was up 7.6% on a year-over-year basis. Analysts predict that Zoom Video Communications will post 1.3 EPS for the current year.

Analysts Set New Price Targets

Several research analysts have recently issued reports on ZM shares. Piper Sandler dropped their target price on shares of Zoom Video Communications from $115.00 to $91.00 and set a neutral rating on the stock in a research note on Tuesday, August 23rd. Stifel Nicolaus dropped their target price on shares of Zoom Video Communications from $120.00 to $90.00 in a research note on Tuesday, August 23rd. Argus downgraded shares of Zoom Video Communications from a buy rating to a hold rating in a research note on Friday, August 26th. Benchmark dropped their target price on shares of Zoom Video Communications from $128.00 to $118.00 and set a buy rating on the stock in a research note on Tuesday, August 23rd. Finally, Morgan Stanley lowered their price objective on shares of Zoom Video Communications from $140.00 to $130.00 and set an overweight rating on the stock in a research report on Tuesday, August 23rd. Two research analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and twelve have given a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of Hold and a consensus target price of $136.03.

Insider Buying and Selling

In related news, CFO Kelly Steckelberg sold 6,700 shares of the business’s stock in a transaction that occurred on Wednesday, June 29th. The shares were sold at an average price of $112.04, for a total value of $750,668.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, CFO Kelly Steckelberg sold 6,700 shares of the business’s stock in a transaction on Wednesday, June 29th. The shares were sold at an average price of $112.04, for a total transaction of $750,668.00. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, COO Aparna Bawa sold 2,000 shares of the business’s stock in a transaction on Tuesday, June 28th. The shares were sold at an average price of $116.62, for a total transaction of $233,240.00. Following the sale, the chief operating officer now directly owns 77,676 shares in the company, valued at $9,058,575.12. The disclosure for this sale can be found here. Insiders sold 32,823 shares of company stock valued at $3,526,086 over the last 90 days. Corporate insiders own 11.24% of the company’s stock.

Institutional Investors Weigh In On Zoom Video Communications

Hedge funds have recently modified their holdings of the company. Global Wealth Management Investment Advisory Inc. raised its position in shares of 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 last quarter. Neo Ivy Capital Management boosted its position in shares of 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 purchasing an additional 133 shares during the period. Covestor Ltd boosted its position in Zoom Video Communications by 76.7% in the 1st quarter. Covestor Ltd now owns 394 shares of the company’s stock valued at $46,000 after buying an additional 171 shares during the period. Wealthfront Advisers LLC boosted its position in Zoom Video Communications by 4.2% in the 1st quarter. Wealthfront Advisers LLC now owns 5,675 shares of the company’s stock valued at $665,000 after buying an additional 229 shares during the period. Finally, Meiji Yasuda Asset Management Co Ltd. raised its holdings in shares of Zoom Video Communications by 3.2% in the 2nd quarter. Meiji Yasuda Asset Management Co Ltd. now owns 7,556 shares of the company’s stock valued at $816,000 after purchasing an additional 236 shares in the last quarter. 52.86% of the stock is owned by hedge funds and other institutional investors.

Zoom Video Communications Company Profile

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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 and Estimates for Zoom Video Communications (NASDAQ:ZM)

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