Zoom Q2 beats but issues soft Q3 revenue and adjusted EPS guidance
Zoom reported Q2 revenue of $1.28 billion versus $1.27 billion consensus and adjusted EPS of $1.55 versus $1.48. For Q3, it guided revenue of $1.275 billion to $1.28 billion and adjusted EPS of $1.46 to $1.48.
Zoom Communications Inc. (NASDAQ: ZM ) on Tuesday reported better-than-expected financial results for the second quarter but issued soft guidance for the third quarter.
Zoom reported revenue of $1.28 billion for the second quarter, beating the consensus estimate of $1.27 billion.
The communications company posted second-quarter adjusted earnings of $1.55 per share, beating analyst estimates of $1.48 per share, according to Pro.
Zoom expects third-quarter revenue to be in the range of $1.275 billion to $1.28 billion, versus estimates of $1.282 billion.
The company anticipates third-quarter adjusted earnings of $1.46 to $1.48 per share versus estimates of $1.50 per share. "Our AI-first Customer Experience portfolio continues to scale, delivering high-double-digit ARR expansion, driven in part by strong adoption of Zoom Virtual Agent, whose customer count increased 256% year over year," said Eric Yuan, founder and CEO of Zoom.
Zoom shares dipped 7% to trade at $93.89 on Wednesday.
These analysts made changes to their price targets on Zoom following earnings announcement.
Jefferies analyst Samad Samana maintained the stock with a Buy and lowered the price target from $118 to $116.
RBC Capital analyst Rishi Jaluria reiterated the stock with an Outperform rating and maintained a $130 price target.
BTIG analyst Allan Verkhovski reiterated the stock with a Buy and maintained a $125 price target.
Needham analyst Joshua Reilly reiterated the stock with a Buy and maintained a $130 price target.
Cantor Fitzgerald analyst Thomas Blakey reiterated the stock with a Neutral and maintained a $104 price target.
Considering buying ZM stock? Here’s what analysts think: Photo via Shutterstock