Zoom Communications Analysts Adjust Future Earnings Projections

Author: Dylan Bailey Updated: 02-24-2025 07:42 AM

Analysts Adjust Zoom Communications Earnings Expectations

Zoom Communications Inc (NASDAQ: ZM) is preparing to reveal its financial results for the fourth quarter shortly. Industry analysts predict that the company will report earnings of $1.35 per share, a slight decrease from the $1.42 per share reported in the same quarter last year. Furthermore, revenue is anticipated to reach approximately $1.19 billion, showcasing modest growth from the previous year's $1.15 billion.

Recent Performance Highlights

In the last quarterly report released on November 25, Zoom achieved a revenue of $1.18 billion, beating analysts' expectations of $1.16 billion. The company also reported adjusted earnings of $1.38 per share, surpassing the anticipated $1.31 per share. This performance highlights Zoom's ability to navigate challenging market conditions effectively.

Current Market Reaction

Despite the optimistic outlook, Zoom's stock experienced a minor decline, falling 1.1% to close at $82.50 on a recent trading day. Investors are keenly watching how these earnings will influence the stock's movement in the upcoming days.

Analysts' Ratings and Predictions

Analysts have varying perspectives on Zoom's stock. Citigroup analyst Tyler Radke has maintained a neutral stance but slightly reduced the price target from $86 to $85. Analysts at Cantor Fitzgerald initiated their coverage with a neutral rating and a price target of $87, while Wells Fargo upgraded its rating from Underweight to Equal-Weight, lifting the price target from $70 to $85. Additionally, Morgan Stanley's Meta Marshall raised the price target from $86 to $96, and Rosenblatt’s Catharine Trebnick increased her price target from $78 to $95, maintaining a buy rating. These adjustments reflect the analysts’ responses to Zoom’s trajectory and competitive landscape.

What the Changes Mean for Investors

With changes in ratings and price targets, investors are encouraged to analyze current trends and projections. The upgrades from respected analysts may indicate a growing confidence in the company's ability to perform despite market fluctuations. As Zoom gears up for its earnings report, investors should consider these insights while making investment decisions around ZM stock.

Frequently Asked Questions

What financial results is Zoom expected to report?

Analysts anticipate Zoom will report earnings of $1.35 per share and revenue of approximately $1.19 billion for the fourth quarter.

How did Zoom perform in the last quarter?

In the last quarterly report, Zoom reported revenue of $1.18 billion and adjusted earnings of $1.38 per share, both exceeding market expectations.

What is the current stock price of Zoom Communications?

As of recent trading sessions, Zoom's stock is priced at $82.50.

Are analysts optimistic about Zoom's future?

Yes, several analysts have recently adjusted their ratings and price targets for Zoom, reflecting a positive outlook despite slight downward adjustments in some cases.

How can I keep up with Zoom's market performance?

Investors can keep up with Zoom's market performance by following earnings reports, analyst ratings, and market trends related to its financial and operational developments.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

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