Company Overview - Zoom Communications is scheduled to announce its earnings on May 21, 2025, with consensus estimates predicting earnings per share of $1.31 and revenues of $1.17 billion for the upcoming quarter, compared to $1.35 earnings per share and $1.14 billion in revenues for the same quarter last year [2][3] - The company currently holds a market capitalization of $26 billion and generated $4.7 billion in revenue over the past twelve months, with an operating profit of $813 million and a net income of $1.0 billion [3] Historical Performance - Over the past five years, Zoom's stock has recorded a negative one-day return after earnings announcements in 68% of cases, with a median negative return of -8.1% and a maximum of -16.7% [1][6] - There have been 19 earnings data points recorded over the last five years, with 6 positive and 13 negative one-day returns, resulting in positive returns approximately 32% of the time, which increases to 36% when analyzing the last three years [6] Trading Strategies - Event-driven traders can utilize historical trends to inform their strategies, focusing on the correlation between short-term and medium-term returns post-earnings [4][5] - A pre-earnings strategy involves understanding historical probabilities of positive or negative reactions and taking positions prior to the earnings release, while a post-earnings strategy evaluates the immediate market response and positions trades accordingly [5][6] Correlation with Peers - The performance of peers can influence post-earnings reactions of Zoom's stock, with historical insights indicating that peer stock returns may impact pricing before earnings are revealed [7][8]

Core Insights - The analysis focuses on high-quality companies that can outperform the market over the long term due to competitive advantages and high levels of defensibility [1]. Group 1 - The analysis is centered on companies in Europe and North America, without constraints regarding market capitalization, covering both large-cap and small-cap companies [1]. - The author has an academic background in sociology, holding a Master's Degree with an emphasis on organizational and economic sociology, and a Bachelor's Degree in Sociology and History [1].

The upcoming report from Zoom Communications (ZM) is expected to reveal quarterly earnings of $1.30 per share, indicating a decline of 3.7% compared to the year-ago period. Analysts forecast revenues of $1.16 billion, representing an increase of 2% year over year.The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this peri ...

Core Viewpoint - Zoom Communications (ZM) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending April 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for May 21, 2025, with expectations that better-than-expected key numbers could lead to a stock price increase, while missing estimates may result in a decline [2]. - The consensus estimate for quarterly earnings is projected at $1.30 per share, reflecting a year-over-year decrease of 3.7%, while revenues are expected to reach $1.16 billion, marking a 2% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised downwards by 0.41%, indicating a collective reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Zoom is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.68%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [7][8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Zoom exceeded the expected earnings of $1.31 per share by delivering $1.41, resulting in a surprise of +7.63% [12]. - Over the past four quarters, Zoom has consistently beaten consensus EPS estimates [13]. Conclusion - While Zoom does not currently appear to be a strong candidate for an earnings beat, investors are advised to consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Unified Engagement from Zoom CX and ServiceNow integrates voice, video, and digital channels directly within the ServiceNow AI Platform for a simpler agent experience and more personalized customer engagements Key Benefits of the Zoom + ServiceNow Integration A Unified Workspace That Puts Agents in Control With Zoom CX embedded inside the ServiceNow Agent Workspace, agents manage every interaction, whether voice, video, or chat, without leaving the platform. Instead of toggling between systems, they can sta ...

SAN JOSE, Calif., May 01, 2025 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. (NASDAQ: ZM) today announced it will release its financial results for the first quarter of fiscal year 2026 on Wednesday, May 21, 2025, after the market closes. A live Zoom Webinar of the event can be accessed at 2:00 pm PT / 5:00 pm ET through Zoom’s investor relations website at https://investors.zoom.com. A replay will be available approximately two hours after the conclusion of the live event. About ZoomZoom’s mission is to pr ...

Company Overview - Zoom Communications (ZM) closed at $76.16, with a slight increase of +0.17% from the previous session, outperforming the S&P 500's gain of 0.06% [1] - Over the past month, ZM shares have increased by 1.59%, while the Computer and Technology sector and the S&P 500 have decreased by 5.52% and 4.29%, respectively [1] Earnings Projections - The upcoming earnings release is anticipated, with projected earnings per share (EPS) of $1.30, reflecting a 3.7% decrease year-over-year [2] - Quarterly revenue is expected to be $1.16 billion, which is a 2.03% increase from the same period last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $5.36 per share and revenue at $4.78 billion, indicating a decrease of -3.25% in earnings and an increase of +2.35% in revenue compared to the previous year [3] - Recent changes in analyst estimates indicate a dynamic business trend, with positive revisions suggesting optimism about the company's profitability [3] Stock Performance and Valuation - The Zacks Rank system, which reflects estimate changes, indicates that ZM currently holds a rank of 3 (Hold) [5] - The Forward P/E ratio for Zoom Communications is 14.19, significantly lower than the industry average of 26.08, suggesting that ZM is trading at a discount [6] Industry Comparison - ZM has a PEG ratio of 8.98, compared to the Internet - Software industry's average PEG ratio of 2.19, indicating a higher valuation relative to growth expectations [7] - The Internet - Software industry is ranked 90th in the Zacks Industry Rank, placing it in the top 37% of over 250 industries [7][8]

Group 1 - The tariff situation may enhance Zoom Communications as a compelling investment opportunity due to its resilient subscription revenue model [1] - The company possesses a strong balance sheet, which is advantageous in a market downturn [1] - The investment strategy focuses on identifying undervalued companies with secular growth potential and strong management teams [1] Group 2 - The analyst emphasizes a long position in Zoom Communications, indicating confidence in its future performance [2] - The investment approach combines growth-oriented principles with strict valuation criteria to ensure a margin of safety [1]

Core Insights - Zoom's platform experienced a significant outage on Wednesday afternoon, which has since been resolved [1] - The outage began around 11:40 a.m., with over 59,000 users reporting issues by noon on DownDetector.com [2] - The cause of the outage remains unclear, with speculation pointing to a possible DNS-related issue [3] Company Response - Zoom confirmed that service has been restored and expressed appreciation for user patience [1] - The company directed inquiries to their post on X for further information regarding the outage [3] User Impact - Users faced difficulties logging in and encountered "Unable to Connect" error messages when trying to enter meetings [2] - The outage affected not only the platform but also Zoom's media inquiry inbox [2]

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