Author: REINHARDT KRAUSE
Source
Zoom Video Communications (ZM) reported April-quarter earnings that handily beat estimates, thanks to cost-cutting moves. ZM stock climbed as revenue also topped Wall Street targets amid slowing growth.
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Zoom earnings for the company’s first quarter rose 13% to $1.16 per adjusted per share. Revenue climbed 3% to $1.105 billion. A year earlier, Zoom earned $1.03 a share on sales of $1.074 billion.
Zoom stock analysts had projected earnings of 99 cents a share on sales of $1.084 billion for the period ended April 30.
Sales growth slowed for the ninth straight quarter as the company adjusts to slower product demand in the post-coronavirus emergency era. Analysts have debated when decelerating sales will hit a bottom.
Zoom Video said enterprise sales to corporate customers rose 13% to $632 million, topping estimates of $621 million. To reignite growth, Zoom Video aims to build a broader business communications platform using artificial intelligence tools.
ZM Stock: Revenue Outlook Tops Views
Zoom reported earnings after the market close on Monday. Zoom stock rose 3.9% to 74.05 in extended trading on the stock market today.
For the current quarter ending in July, Zoom said it expects earnings of $1.05 a share at the midpoint of its outlook, in line with estimates. The company forecast revenue of roughly $1.13 billion vs. estimates of $1.11 billion.
ZM stock had advanced 5% in 2023 heading into the Zoom earnings report. Zoom’s cloud-based software sets up video calls, with chat tools available.
Zoom stock owns an IBD Relative Strength Rating of only 25 vs. a best-possible 99, according to IBD Stock Checkup.
ZM stock peaked at 588.84 in October 2020.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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The post Zoom Earnings Top Estimates As Coronavirus Star Seeks Rebound appeared first on Investor’s Business Daily.