Business

Zoom Video logs first billion-dollar quarter, but the stock is still falling

Zoom Video Communications Inc. reported its first billion-dollar quarter Monday, however the videoconferencing firm’s steering despatched shares plunging greater than 9% in after-hours buying and selling.

Zoom
ZM,
+1.96%

reported fiscal second-quarter net earnings of $316.9 million, or $1.04 a share, in contrast with net earnings of $185.7 million, or 63 cents a share, within the year-ago quarter. The corporate’s adjusted net earnings was $1.36 a share. Income soared 54% to $1.02 billion from $663.5 million a yr in the past.

Analysts surveyed by FactSet had anticipated adjusted net earnings of $1.16 a share on income of $991 million.

“In Q2, we achieved our first billion greenback income quarter whereas delivering robust profitability and money move,” Zoom Chief Government Eric Yuan mentioned in a press release asserting the outcomes.

The higher-than-expected top- and bottom-line quarterly outcomes have been undercut, nevertheless, by a tepid forecast for third-quarter earnings. Zoom gave steering for between $1.07 and $1.08 a share of adjusted earnings, whereas analysts polled by FactSet anticipated $1.10 a share.

The earnings and income win adopted an ebullient word final week from Morgan Stanley analyst Meta Marshall, who raised her score on Zoom to chubby, after being at equal weight since she began protecting the inventory in Could 2019, a month after it went public. Marshall raised her worth goal to $400 from $360.

Learn extra: Zoom Video’s stock rallies after Morgan Stanley says stock has gotten too cheap to ignore

This got here as welcome news for traders, who had seen the worth of their shares plummet greater than 40% since Zoom’s inventory peaked at a closing worth of $568.34 on Oct. 19, 2020, on a nationwide wave of distant work. 

Zoom’s inventory is up 3% to this point in 2021. The broader S&P 500 index
SPX,
+0.43%

 has gained 20.6% this yr.

https://www.marketwatch.com/story/zoom-video-logs-first-billion-dollar-quarter-but-the-stock-is-still-falling-11630354948?rss=1&siteid=rss | Zoom Video logs first billion-dollar quarter, however the inventory remains to be falling

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