Wall Street analysts expect Zoom Communications (ZM) to post quarterly earnings of $1.48 per share in its upcoming report, which indicates a year-over-year increase of 5%. Revenues are expected to be $1.23 billion, up 4.1% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Ahead of a company's earnings disclosure, it is crucial to g ...

Core Viewpoint - The article emphasizes a fundamentals-based approach to value investing, highlighting the importance of long-term growth and robust balance sheets over low valuation multiples [1]. Group 1: Investment Philosophy - The company believes that not all low multiple stocks are cheap, and it seeks firms with steady long-term growth and no cyclicality [1]. - There is a recognition that investing in successful companies carries risks, particularly regarding valuation, but some opportunities may justify higher prices due to expansive growth potential [1]. Group 2: Company Focus - The analysis specifically mentions Zoom Video Communications (ZM) as a company with improved valuation and new growth vectors, leading to a buy recommendation [1].

Core Insights - The article emphasizes a fundamentals-based approach to value investing, highlighting the importance of long-term growth and robust balance sheets over low valuation multiples [1] Group 1: Investment Philosophy - The author disagrees with the notion that low multiple stocks are inherently cheap, advocating for a focus on companies with steady long-term growth and no cyclicality [1] - There is a recognition that investing in successful companies carries risks, particularly the risk of overpaying, which underscores the significance of valuation [1] - The article suggests that in certain situations, the potential for growth can outweigh immediate price concerns, indicating a broader perspective on investment timing [1]

Core Insights - Zoom Communications experienced a significant increase in stock price, rising 12.7% after reporting earnings that exceeded analyst expectations [1] - The company reported quarterly sales of $1.23 billion, surpassing the forecast of $1.21 billion, and earnings per share of $2.01, which is higher than the expected $1.44 [1][3] - Despite only a 4% year-over-year growth in sales, Zoom achieved a remarkable 204% increase in earnings per share [3] Financial Performance - Free cash flow for the quarter was reported at $629.3 million, reflecting a 30% year-over-year increase [4] - For the full fiscal year 2026, Zoom anticipates sales to exceed $4.85 billion, with pro forma profits projected between $5.95 and $5.97 per share [5] - The company's market capitalization stands at $26.8 billion, resulting in a price-to-free cash flow ratio of 14.3, indicating potential value for investors [6]

Core Viewpoint - Zoom's stock experienced significant volatility post-pandemic, dropping 65% from its peak market cap of over $160 billion, but has shown signs of recovery from its April lows, indicating a potential bullish reversal [1][4]. Group 1: Stock Performance - Zoom's stock was a standout performer during the pandemic, increasing from $60 to $600 within a year, marking a tenfold increase [2]. - Following this peak, the stock faced a dramatic decline of 90%, leading to a prolonged period of stagnation over the past three to four years [2][4]. - Recent analysis suggests that the stock may be transitioning from a bearish to a bullish trend, with various chart patterns indicating a potential reversal [3][4]. Group 2: Financial Metrics - The company reported a significant increase in enterprise clients, adding 100,000 new large companies, which reflects positive business momentum [5]. - Zoom has a substantial cash reserve, with approximately one-third of its value held in cash, and a buyback program in place amounting to $2.7 billion [6]. - The valuation of Zoom is currently around 14 times earnings, but when accounting for cash, it drops to under 10 times earnings [7].

Group 1 - Zoom Communications Inc. (NASDAQ: ZM) reported its 2QFY26 earnings, leading to a stock increase of approximately 5% in pre-market trading and a further rise of 10% at market open [1] - The stock performance was positively influenced by the earnings report, indicating strong market reaction and investor interest [1] Group 2 - The article emphasizes the importance of exclusive insights and high-focus stocks for investors, suggesting a strategy of dominating investment rather than just participating [1]

Core Viewpoint - The article discusses the recent financial performance of a specific company, highlighting significant revenue growth and strategic initiatives that are expected to drive future profitability [1]. Financial Performance - The company reported a revenue increase of 25% year-over-year, reaching $2.5 billion in the last quarter [1]. - Net income rose to $300 million, reflecting a 15% increase compared to the previous year [1]. Strategic Initiatives - The company is investing heavily in technology upgrades, with a budget allocation of $150 million aimed at enhancing operational efficiency [1]. - A new product line is set to launch in Q2, which management believes will capture an additional 10% market share [1]. Market Position - The company currently holds a 20% market share in its sector, positioning it as a leading player among competitors [1]. - Analysts predict that the company's market share could grow to 25% within the next two years due to its aggressive expansion strategy [1].

Group 1 - Zoom Communications Inc. is set to release its second-quarter earnings results on August 21, with analysts expecting earnings of $1.38 per share, a slight decrease from $1.39 per share in the same quarter last year [1] - The company is projected to report quarterly revenue of $1.2 billion, an increase from $1.16 billion in the previous year [1] - In the first quarter, Zoom reported better-than-expected earnings and provided positive guidance, although its shares experienced a minor decline of 0.1% to close at $72.16 [2] Group 2 - Keybanc analyst Jackson Ader initiated coverage on Zoom with an Underweight rating and a price target of $73 [7] - B of A Securities analyst Nikolay Beliov maintained a Neutral rating and raised the price target from $79 to $84 [7] - JP Morgan analyst Mark Murphy also maintained a Neutral rating, increasing the price target from $80 to $85 [7]

Core Viewpoint - Wall Street analysts anticipate a slight decline in Zoom Communications' quarterly earnings per share, with a projected EPS of $1.37, reflecting a year-over-year decrease of 1.4%, while revenues are expected to increase by 3% to $1.2 billion [1]. Earnings Projections - Over the past 30 days, the consensus EPS estimate has been revised downward by 1.1%, indicating a collective reassessment by analysts of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts estimate 'Geographic Revenue - Asia Pacific (APAC)' to be $146.13 million, representing a year-over-year increase of 2.7% [5]. - 'Geographic Revenue - Europe, Middle East, and Africa (EMEA)' is projected to reach $190.04 million, indicating a 3% increase from the previous year [5]. - The 'Geographic Revenue - Americas' is estimated at $862.08 million, reflecting a 3.2% year-over-year growth [6]. Customer Metrics - The average prediction for 'Enterprise Customers' stands at 186,862, down from 191,600 in the same quarter last year [6]. - Analysts expect 'Customers >$100K TTM Revenue' to reach 4,233, an increase from 3,933 reported in the same quarter of the previous year [7]. Remaining Performance Obligations (RPO) - The 'Current Remaining Performance Obligation (RPO)' is expected to be $2.45 billion, up from $2.28 billion year-over-year [7]. - Total 'Remaining Performance Obligations (RPO)' are projected at $4.00 billion, compared to $3.78 billion in the previous year [8]. - 'Non-Current Remaining Performance Obligation (RPO)' is forecasted to reach $1.53 billion, slightly up from $1.50 billion reported last year [8]. Stock Performance - Zoom shares have decreased by 2.3% over the past month, contrasting with a 3.5% increase in the Zacks S&P 500 composite [8].

Core Insights - Zoom Communications reported revenue of $1.17 billion for the quarter ended April 2025, reflecting a year-over-year increase of 2.9% and a surprise of +0.89% over the Zacks Consensus Estimate of $1.16 billion [1] - The earnings per share (EPS) for the quarter was $1.43, surpassing the previous year's $1.35 and exceeding the consensus EPS estimate of $1.30 by +10.00% [1] Financial Performance Metrics - Zoom's shares have returned +15.8% over the past month, outperforming the Zacks S&P 500 composite's +12.7% change [3] - The company has 182,600 enterprise customers, which is below the average estimate of 193,166 [4] - Customers generating over $100K in trailing twelve months (TTM) revenue totaled 4,192, slightly above the average estimate of 4,155 [4] - Current Remaining Performance Obligation (RPO) stands at $2.36 billion, exceeding the average estimate of $2.33 billion [4] - Total Remaining Performance Obligations (RPO) is $3.88 billion, slightly above the average estimate of $3.86 billion [4] - Non-Current Remaining Performance Obligation (RPO) is $1.52 billion, marginally above the average estimate of $1.51 billion [4] Geographic Revenue Breakdown - Revenue from the Americas reached $848 million, surpassing the average estimate of $838.48 million, with a year-over-year change of +3.5% [4] - Revenue from Europe, the Middle East, and Africa (EMEA) was $185 million, slightly above the average estimate of $184.58 million, reflecting a +0.5% change year-over-year [4] - Revenue from the Asia Pacific (APAC) region was $142 million, just below the average estimate of $143.01 million, with a +2.9% change compared to the previous year [4] - Online revenue was reported at $470 million, slightly below the average estimate of $472.82 million [4] - Enterprise revenue reached $704.70 million, exceeding the average estimate of $689.42 million [4]