The San Jose, California-based communications technology company Zoom is expected to report its second-quarter earnings of $1.16 per share, representing a year-over-year growth of more than 26%, compared to $0.92 per share in the same period a year ago.
The company, which provides video telephony and online chat services through a cloud-based peer-to-peer software platform, is expected to grow approximately 50% in revenue to $990.2 million. Zoom will report the results of the second quarter of fiscal year 22 after the market close on Monday, August 30.
Zoom expects to report second quarter revenue of $985 million to $990 million and adjusted earnings of $1.14 to $1.15 per share. In its full-year outlook, the company now expects revenue of $3.98 billion – $3.99 billion and adjusted earnings of $4.56 – $4.61 per share.
Zoom shares have been tied so far this year. The stock ended 0.74% lower at $337.74 on Wednesday.
Comments from analysts
“Continuation of WFH and structural increase in video usage, advancement in Phone and pending FIVN-acq support Zoom Video communication’ (ZM) platform capabilities in the longer term. With the Delta variant likely to slow the NT progression, FQ2 expectations are high. Keep EW positive as the next growth phases come in sight,” said Meta A Marshall, equity analyst at Morgan Stanley.
“Zoom has established its position as the newly emerging leader in video conferencing, now a growth market, largely credible to the company itself given the introduction of a solution that employees actually use. The company has built a meaningful competitive moat on more than just architecture, but a rapid rise in video usage has attracted significant investment efforts from competitors. Position within customers makes an attractive opportunity to expand into the broader UC market. Early wins are encouraging. Expanding platform with pending FIVN acquisition. Environment post-COVID and large-scale WFH, and timing to achieve, less certain.”
Zoom Stock Price Forecast
Twenty-one analysts who gave stock ratings for Zoom video communication in the last three months, the 12-month average price predicted $421.75 with a high forecast of $495.00 and a low forecast of $345.00.
The average price target represents a 24.87% change from the last price of $337.74. Of those 21 analysts, according to Tipranks, 10 rated 10 “Buy”, 11 rated “Hold”, while none rated “Sell”.
Morgan Stanley gave the base target of $360 with a high of $480 in a bull scenario and $240 in the worst case scenario. The company gave an “Equal-weight” rating to the shares of the communications software company.
Several other analysts have also updated their stock outlook. BTIG lowered its share price forecast to $495 from $550. Deutsche Bank raised its price target from $360 to $375. JPMorgan lowered its price target from $456 to $385.
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This article was originally posted on FX Empire