Preview: What To Expect From Zoom Q4 Earnings
The San Jose, California-based communications technology company Zoom is expected to report its fiscal fourth-quarter earnings of $0.67 per share, which represents a year-over-year decline of nearly 24% from $0.88 per share seen in the same period a year ago.
The company, which provides video telephony and online chat services through a cloud-based peer-to-peer software platform, would post revenue growth of 19% to $1.05 billion.
“Reasons To Buy: Zoom Video is benefiting coronavirus-induced remote working trend. Its efforts to eradicate security and privacy flaws are expected to aid it to expand its userbase,” noted analysts at ZACKS Research.
“Reasons To Sell: Stiff competition with the entry of Facebook and Verizon in the video communication space and massive repercussion from customers due to security and privacy lapses are concerns.”
Zoom stock rose over 2% to $129.61. The stock fell over 30% so far this year after falling more than 45% in 2021.
Analyst Comments
“We have seen a reluctance of investors around Zoom given recent performance of WFH winners. Look to FY23 guide as opportunity to reset Street expectations, giving investors a cleaner path to getting involved. Remain OW on early days company at upselling large installed base with ancillary products,” noted Meta Marshall, equity analyst at Morgan Stanley.
“Zoom has established its position as the leader in video conferencing, now a growth market. Company has meaningful competitive moat built on more than just architecture. Position within customers makes an attractive opportunity to expand into broader UC market. Early wins encouraging. Opportunities to expand platform remain. Manageable churn post-COVID as move to hybrid work setups continues.”
Zoom Stock Price Forecast
Twelve analysts who offered stock ratings for Zoom in the last three months forecast the average price in 12 months of $207.08 with a high forecast of $300.00 and a low forecast of $130.00.
The average price target represents a 63.09% change from the last price of $126.97. Of those 12 analysts, seven rated “Buy”, four rated “Hold”, while one rated “Sell”, according to Tipranks.
Morgan Stanley gave the base target price of $165 with a high of $230 under a bull scenario and $100 under the worst-case scenario. The investment bank gave an “Overweight” rating on the communications software company’s stock.
Several analysts have also updated their stock outlook. Citigroup cut the price target to $147 from $250. Mizuho lowered the target price to $190 from $300. Baird slashed the price objective to $250 from $300.
Technical analysis suggests it is good to sell as 100-day Moving Average and 100-200-day MACD Oscillator gives a strong selling opportunity.
Check out FX Empire’s earnings calendar
This article was originally posted on FX Empire
