Zoom Video Communications (NASDAQ:ZM) Releases FY23 Earnings Guidance

Zoom Video Communications (NASDAQ:ZM – Get Rating) issued an update on its FY23 earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of $3.70-3.77 for the period, compared to the consensus estimate of $3.57. The company issued revenue guidance of $4.53-4.55 billion, compared to the consensus revenue estimate of $4.54 billion.Zoom Video Communications also updated its FY 2023 guidance to $3.70-$3.77 EPS.

ZM traded down $0.41 during trading on Monday, reaching $89.33. 8,576,014 shares of the company were exchanged, compared to its average volume of 4,657,702. The stock has a market cap of $26.72 billion, a P/E ratio of 19.90, a PEG ratio of 3.38 and a beta of -0.66. The firm has a 50 day moving average of $105.90 and a 200 day moving average of $149.04. Zoom Video Communications has a 52 week low of $79.03 and a 52 week high of $406.48.

Zoom Video Communications (NASDAQ:ZM – Get Rating) last announced its quarterly earnings results on Monday, February 28th. The company reported $0.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.66 by $0.09. Zoom Video Communications had a return on equity of 21.17% and a net margin of 33.54%. The company had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.05 billion. During the same quarter in the previous year, the firm posted $0.88 EPS. The firm’s quarterly revenue was up 21.4% on a year-over-year basis. On average, analysts forecast that Zoom Video Communications will post 1.38 earnings per share for the current year.

Several analysts have recently weighed in on ZM shares. Mizuho cut their price objective on Zoom Video Communications from $300.00 to $190.00 and set a buy rating for the company in a report on Wednesday, February 23rd. Argus cut their price objective on Zoom Video Communications from $350.00 to $170.00 in a report on Wednesday, March 2nd. BNP Paribas began coverage on Zoom Video Communications in a report on Tuesday, March 29th. They issued a neutral rating and a $110.00 price objective for the company. Robert W. Baird reduced their target price on Zoom Video Communications from $190.00 to $180.00 and set an outperform rating for the company in a report on Tuesday, March 1st. Finally, FBN Securities reduced their target price on Zoom Video Communications from $325.00 to $180.00 and set an outperform rating for the company in a report on Tuesday, March 1st. One equities research analyst has rated the stock with a sell rating, sixteen have issued a hold rating and thirteen have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Zoom Video Communications has a consensus rating of Hold and an average target price of $184.58.

In related news, COO Aparna Bawa sold 2,404 shares of the firm’s stock in a transaction on Friday, May 13th. The stock was sold at an average price of $95.04, for a total transaction of $228,476.16. Following the completion of the sale, the chief operating officer now directly owns 84,260 shares of the company’s stock, valued at approximately $8,008,070.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Velchamy Sankarlingam sold 2,256 shares of the firm’s stock in a transaction on Tuesday, April 12th. The shares were sold at an average price of $111.69, for a total value of $251,972.64. Following the sale, the insider now directly owns 5,836 shares of the company’s stock, valued at $651,822.84. The disclosure for this sale can be found here. Over the last three months, insiders sold 56,534 shares of company stock valued at $6,270,060. 11.24% of the stock is currently owned by insiders.

A number of hedge funds have recently added to or reduced their stakes in ZM. Renaissance Technologies LLC increased its stake in shares of Zoom Video Communications by 61.0% in the 1st quarter. Renaissance Technologies LLC now owns 6,449,306 shares of the company’s stock valued at $756,052,000 after buying an additional 2,444,294 shares during the period. Morgan Stanley increased its holdings in Zoom Video Communications by 6.4% in the second quarter. Morgan Stanley now owns 12,384,701 shares of the company’s stock valued at $4,793,252,000 after purchasing an additional 742,240 shares during the last quarter. Deutsche Bank AG increased its holdings in Zoom Video Communications by 113.7% in the fourth quarter. Deutsche Bank AG now owns 726,710 shares of the company’s stock valued at $133,649,000 after purchasing an additional 386,594 shares during the last quarter. Alyeska Investment Group L.P. bought a new stake in Zoom Video Communications in the first quarter valued at about $19,232,000. Finally, Federated Hermes Inc. increased its holdings in Zoom Video Communications by 10,456.3% in the first quarter. Federated Hermes Inc. now owns 83,289 shares of the company’s stock valued at $9,764,000 after purchasing an additional 82,500 shares during the last quarter. 55.94% of the stock is owned by hedge funds and other institutional investors.

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.

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