Zoom Video Communications to Report Terrible Earnings, Analysts Say
August 15, 2022
Trending News 🌧️Zoom Video Communications($NASDAQ:ZM), Inc will report fiscal third-quarter results on August 22, and despite the stock’s big move higher over the past several weeks, analysts forecast terrible earnings from the company. Analysts estimate third-quarter revenue to drop 33% y/y to $0.91, while revenue growth slows to just 9.4%, bringing total revenue to $1.1 billion. This would mark the first time that Zoom has reported year-over-year declines in both revenue and earnings. Do you think this will affect ZOOM VIDEO COMMUNICATIONS market and earnings in the long term? It is hard to say. The company is still growing, just at a slower rate than before. And, despite the forecasted decline in earnings, Zoom’s stock price has continued to rise in recent weeks. So it seems that investors are still bullish on the company’s long-term prospects.
Market ReactionOn Friday, Zoom Video Communications stock opened at $109.4 and closed at $109.5, up by 1.4% from previous closing price of 108.1. This comes after analysts have predicted that the company will report terrible earnings.
VI AnalysisZoom Video Communications, Inc (ZM) is a provider of video-first communications technology solutions. The company’s fundamentals reflect its long term potential and below analysis on Zoom Video Communications are made simple by VI app. The VI Star Chart shows that Zoom Video Communications is strong in asset, growth, and medium in profitability and weak in dividend. Zoom Video Communications is classified as ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. High growth companies are deemed more risky as they attempt to grow faster. Zoom Video Communications has a high health score of 8/10 with regard to its cashflows and debt, is capable to pay off debt and fund future operations.
SummaryThe stock price was up 1.4% the following day. The company has been struggling to regain investor confidence after a string of bad news, including a data breach and allegations of spying on users. Analysts say the company’s earnings are likely to be poor, and that Zoom’s stock price is likely to drop as a result.
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