Core Viewpoint - Zoom Video has demonstrated strong performance in Q3, exceeding earnings expectations and providing favorable revenue guidance, making it a stock to watch in the tech sector [1][2]. Group 1: Q3 Results - Zoom reported Q3 EPS of $1.38, surpassing Zacks estimates of $1.31 and increasing 7% from $1.29 per share a year ago [2]. - Revenue for Q3 was $1.17 billion, a 3% year-over-year increase, slightly above expectations of $1.16 billion [2]. - The company has consistently exceeded Zacks EPS Consensus since going public in 2019, with an average EPS surprise of 14.29% over the last four quarters [3]. Group 2: Guidance and Future Outlook - Zoom's Q4 revenue guidance is slightly above expectations, with a record over 20,000-seat deal in EMEA for its Contact Center [5]. - The full-year revenue guidance for fiscal 2025 is projected at $4.65-$4.66 billion, exceeding the current Zacks Consensus of $4.64 billion, indicating a 2% growth [5]. Group 3: Stock Performance and Valuation - Year-to-date, Zoom's stock has increased by 19%, although it lags behind the broader indexes and the Zacks Internet-Software Market's 33% growth [8]. - The stock trades at a forward earnings multiple of 15.6X, significantly lower than the S&P 500's 25.4X and the industry average of 32.6X [9]. - Zoom's attractive P/E valuation and consistent performance are expected to lead to upward revisions in earnings estimates [11].
Zoom Video (ZM) Continues Streak of Exceeding EPS Expectations