Will Zoom Video Break Through With Q1 Earnings?

Zoom Video Communications Inc. (NASDAQ: ZM) is scheduled to release its most recent quarterly results after the markets close on Tuesday. Overall, analysts are looking for $0.09 in earnings per share (EPS) and $202.48 million in revenue. The fiscal first quarter of last year reportedly had $0.03 in EPS and $111.66 million in revenue.

The company claims that “more than 300 million people around the world are using Zoom during this challenging time.” The statement does not say how many users Zoom actually has. In fact, its original statement about users was retracted and replaced with the number of people who used Zoom last month. Moreover, Zoom has had security problems, which it says it has fixed. Regardless, Wall Street has pardoned the company. Its market cap is now $57 billion.

Zoom’s revenue last year was a modest $622 million. On that, the company had $2 million in profit. There is no saying what Zoom’s revenue will be this year. The pandemic has caused most public corporations to tear up their forecasts. However, as video conferencing grows as a result of the spread of COVID-19, it is a safe bet that its top line will rise substantially.

Excluding Tuesday’s move, Zoom Video Communications stock had outperformed the S&P 500 and Dow Jones industrial average with a gain of about 200% year to date. In the past 52 weeks, the share price was up closer to 156%.

A few analysts weighed in on Zoom ahead of the report:

  • Rosenblatt Securities has a Neutral rating with a $150 price target.
  • Robert Baird has an Outperform rating and a $180 price target.
  • Citigroup’s Neutral rating comes with a $186 target price.
  • Piper Sandler rates it as Neutral rating with a $144 price target.
  • BTIG Research has a Hold rating.

Zoom Video Communications stock traded up about 1% to $206.77 on Tuesday, in a 52-week range of $60.97 to $212.69. The consensus price target is $132.07.