What to Expect When Zoom Video Reports After the Close

By Chris Lange Published Mar 4, 10:55AM EST

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What to Expect When Zoom Video Reports After the Close — © SPmemory / Getty Images

Zoom Video Communications Inc. (NASDAQ: ZM | ZM Price Prediction) 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%.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.