Zoom Communications (NASDAQ:ZM) Posts Earnings Results, Beats Estimates By $0.14 EPS

Key Points

• Zoom Communications beat earnings expectations for the quarter, reporting EPS of $1.55 versus the $1.41 consensus estimate. Revenue also came in slightly ahead of forecasts at $1.24 billion versus $1.22 billion expected.
• The stock traded lower despite the earnings beat, falling $2.67 during the session to $96.75. Zoom’s recent trading range remains wide, with a 52-week low of $69.15 and high of $111.56.
• Insider selling was notable, including sales by CFO Michelle Chang and CEO Eric S. Yuan executed under pre-arranged 10b5-1 plans. In the last three months, insiders have sold 144,329 shares worth about $12.36 million.

Zoom Communications (NASDAQ:ZM - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.41 by $0.14, FiscalAI reports. The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.22 billion. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%.

Zoom Communications Price Performance

Shares of ZM stock traded down $2.67 during mid-day trading on Thursday, hitting $96.75. The company had a trading volume of 8,076,156 shares, compared to its average volume of 4,365,550. Zoom Communications has a 52-week low of $69.15 and a 52-week high of $111.56. The stock's 50 day moving average price is $87.73 and its 200-day moving average price is $86.52. The company has a market capitalization of $28.51 billion, a P/E ratio of 15.60, a P/E/G ratio of 5.57 and a beta of 1.00.

Insider Transactions at Zoom Communications

In other news, CFO Michelle Chang sold 8,489 shares of the business's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $81.32, for a total value of $690,325.48. Following the transaction, the chief financial officer owned 30,467 shares of the company's stock, valued at approximately $2,477,576.44. The trade was a 21.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Eric S. Yuan sold 69,923 shares of the business's stock in a transaction on Monday, April 13th. The stock was sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the completion of the transaction, the chief executive officer directly owned 36,796 shares in the company, valued at $2,988,571.12. This trade represents a 65.52% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 144,329 shares of company stock valued at $12,364,989. 11.51% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zoom Communications

Several hedge funds have recently modified their holdings of the stock. Kestra Advisory Services LLC lifted its holdings in shares of Zoom Communications by 2.0% in the fourth quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company's stock worth $512,000 after buying an additional 116 shares in the last quarter. Daiwa Securities Group Inc. lifted its holdings in shares of Zoom Communications by 0.7% in the second quarter. Daiwa Securities Group Inc. now owns 24,395 shares of the company's stock worth $1,902,000 after buying an additional 181 shares in the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA lifted its holdings in shares of Zoom Communications by 83.3% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company's stock worth $38,000 after buying an additional 200 shares in the last quarter. Principal Securities Inc. increased its position in Zoom Communications by 8.1% in the fourth quarter. Principal Securities Inc. now owns 3,053 shares of the company's stock worth $263,000 after purchasing an additional 230 shares during the last quarter. Finally, Utah Retirement Systems raised its stake in Zoom Communications by 0.6% during the fourth quarter. Utah Retirement Systems now owns 43,622 shares of the company's stock valued at $3,764,000 after purchasing an additional 245 shares in the last quarter. Hedge funds and other institutional investors own 66.54% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Zacks Research downgraded shares of Zoom Communications from a "strong-buy" rating to a "hold" rating in a report on Friday, February 13th. Wall Street Zen downgraded shares of Zoom Communications from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Weiss Ratings raised shares of Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 1st. Robert W. Baird lifted their price target on shares of Zoom Communications from $95.00 to $105.00 and gave the company an "outperform" rating in a report on Tuesday. Finally, Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a report on Wednesday. Fourteen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $97.57.

About Zoom Communications

Zoom Video Communications, Inc (commonly referred to as Zoom) is a provider of cloud-based communications and collaboration solutions. The company's platform supports video conferencing, voice calling, instant messaging, webinars and large-scale virtual events, and meeting room systems, marketed to businesses, educational institutions, government organizations and individual users. Zoom's product lineup includes Zoom Meetings, Zoom Phone, Zoom Rooms, Zoom Video Webinars and Zoom Chat, and the company offers integrations and extensions through a developer marketplace and third-party apps.

Founded in 2011 by Eric S.

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