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]
Buy Or Sell ZM Stock Ahead Of Earnings?