Zoom shares: earnings and sales top expectations despite return to office
Excluding items, Zoom posted a second quarter profit of $1.34 per share, compared with a target estimate of $1.06, and the company said the outlook was also improved.
While the stock was up 5.9% it has been a serial underperformer in terms of return with a 1% rise against a 15% gain for the S&P 500.
(Video Transcript)
Zoom share price
Shares in Zoom video communications, the company did so well during the lockdown period, has seen sales and earnings top expectations. Let's take a look at the figures for the company. Excluding items, it posted second quarter profit of $1.34 per share compared with the target estimate of just over $1. Revenue for the quarter ended the 31st of July rose 3.6% to $1.14 billion.
Earnings per share
Now that too is above analysts average expectations of $1.12 billion. It also raised its annual earnings and revenue forecast as well. It now sees $4.63 to $4.67 in adjusted earnings per share up from $4.30. And in terms of revenue, that too has raised up to $4.48 to $4.49 billion in revenue up from $4.49 billion. This is for the full fiscal 2024 year.
Now, if we look at what happened in terms of the share price move yesterday, the stock was up almost 12% at one point yesterday, but then came a little bit of a pullback. But nonetheless, it ended up 5.96%. Now, this is going to be one of the big drivers at the start of today's trade for tech stocks, pretty much across the board, the company coming through with those earnings after the bell last night.
Zoom stock
Notwithstanding the after hours move, Zoom stock has declined around about 1% so far this year while the S&P 500 index has risen 15% over the same period. So you can see it's been a big outperformance by other companies and the index itself. And you can see the big loss of value that Zoom has had since the real highs that we had all the way back in the height of the lockdown when this stock was worth $588 per share. It's currently traded at $70.
For more videos from us here at IGTV, join us on Twitter at IGcom, Instagram, and subscribe to our YouTube channel.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Take a position on indices
Deal on the world’s major stock indices today.
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
