Zoom Video Communications Earnings: ZM stock rallies 19% after raising guidance

Zoom Video reported terrific earnings after the close on Monday.
ZM stock has been down as much as 85% from its all-time high.
Analysts expected 87 cents a share on $1.07 billion.

Clay Webster FXStreet

Zoom (ZM) stock exploded 19% afterhours on Monday after the video conferencing company delivered results for the quarter ending April 30 that impressed the market. Zoom delivered adjusted earnings per share (EPS) of $1.03, which beat consensus by about 18%. Revenue came in right in line at $1.07 billion. Shares jumped from a closing price of $89.33 to above $106.

The market expected a fall in YoY profitability, which it got but at a lower reduction than expected. In the quarter a year ago, Zoom reported adjusted EPS of $1.32. Wall Street consensus had ZM pegged for the quarter at $0.87 a share though. This implied EPS dropping by 33% YoY and revenue climbing 12% over that timeline. Before the earnings release Citi and Piper Sandler both put a neutral outlook on ZM shares. Benchmark on the other hand believed that shares had already been beaten down and were in line for a rally if the quarter is a success. It looks like Benchmark takes the cake.

Management offered fiscal Q2 guidance, the quarter, that was also better than analysts had been expecting. They put FQ2 EPS between 90 and 92 cents and revenue at $1.12 billion. For the full year, Zoom raised its EPS expectation by about 20 cents to between $3.70 and $3.77. It still sees revenue coming in at $4.54 billion.

The jump afterhours pushed Zoom stock the whole way above the 50-day moving average, at least briefly. Currently, it sits at $105.24. The 50-day moving average will be the target on Tuesday. The post-session rally also had Zoom stock trading above the top line of its descending price channel. Closing above there on Tuesday would signal a turnaround is truly in the works.

Zoom daily chart

Like this article? Help us with some feedback by answering this survey:

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

AUD/USD falters just above 0.7000; looks at the jobs data

AUD/USD has briefly managed to surpass the 0.7000 threshold on Wednesday, although the move rapidly dissipated following higher-than-estimated US inflation data in September, which has eventually lent extra legs to the Greenback. Moving forward, the release of the labour market report will take centre stage in Australia on Thursday.

USD/JPY consolidates near 158.50; looks to US CPI for fresh impetus

USD/JPY stays range-bound near 158.50 in the Asian session on Wednesday, with looming intervention risks supporting the Japanese Yen and capping upside amid a softer US Dollar. However, geopolitical uncertainties act as a tailwind for the safe-haven USD and the pair. Traders also seem hesitant ahead of the release of the latest US inflation figures.

Gold remains offered below $4,100

Gold adds to the weekly bearish tone and slips back below the $4,100 mark per troy ounce on Wednesday. Indeed, the precious metal continues to suffer the stronger US Dollar and rising US Treasury yields as bets for extra tightening by the Fed remain on the rise following US inflation figures.

Bitcoin and Gold Forecast: BTC and XAU drop after hot US CPI

Bitcoin (BTC) is edging lower toward $82,000 on Wednesday as headwinds from sticky inflation in the United States (US) force investors to reevaluate their positioning. Gold (XAU/USD) remains under sustained selling pressure, trading below $4,100 and falling for a third consecutive day. As the correction intensifies, a retest of key $4,000 support appears likely unless bearish momentum abates.

Stock futures just went red on the CPI. Here's what the bond market is pricing that equities haven't caught up to

Since late June, the bond market has been pricing in a Federal Reserve (Fed) that keeps raising rates into 2027, and most US stocks have already been marked down for it. The S&P 500 hasn't, because a handful of AI-linked giants make up much of the index and their prices haven't followed the rest.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?