What to Expect When Zoom Video Reports After the Close

Technology

Published: March 4, 2020 10:55 am

Zoom Video Communications Inc. (NASDAQ: ZM) will release its fiscal fourth-quarter financial results after the markets close on Wednesday. The consensus estimates are calling for $0.07 in earnings per share (EPS) and $176.55 million in revenue.

Zoom had one of the hottest initial public offerings in 2019. This firm provides a video-first communications platform that fundamentally changes how people interact. Zoom connects people through frictionless video, voice, chat and content sharing and enables face-to-face video experiences for thousands of people in a single meeting across disparate devices and locations.

The cornerstone of the platform is Zoom Meetings, around which the firm provides a full suite of products and features designed to give users a frictionless communications experience. Users are comprised of both hosts who organize video meetings and the individual attendees who participate in those video meetings. Many customers also choose to implement Zoom Rooms, a software-based conference room system, which enables users to easily experience Zoom Meetings in their physical meeting spaces.

Zoom has become an increasingly popular stock in the midst of this coronavirus scare, as more and more people will not be traveling to meetings or conferences. Zoom’s platform offers another avenue to do business. This is one of the many stocks benefitting from being a part of the “stay-at-home economy.”

Excluding Tuesday’s move, Zoom stock had vastly outperformed the broad markets with a gain of about 73% year to date. In the past six months alone, the stock is up closer to 28%.

Here’s what a few analysts had to say about Zoom ahead of the report:

Robert Baird has an Outperform rating with a $120 price target.
Morgan Stanley has an Equal Weight rating and a $90 price target.
Piper Jaffray has a Neutral rating with a $70 target price.
Roseblatt Securities has a Hold rating with a $70 price target.

Zoom Video Communications stock was last seen down about 3% at $113.64 on Wednesday, in a post-IPO range of $59.94 to $121.93. The consensus price target is $84.94.