📈Stock of the Day...ZM
Zoom Communications (symbol ZM) issued earnings last night that beat expectations and they raised guidance.
Here is What Happened: ZM 4Q revenue increased 4% year-over-year to $1.12 billion, which beat consensus estimates of $1.1 billion, according to the press release. The communications company reported quarterly earnings of $1.22 per share, which beat analysts estimates of 80 cents per share. The beat of 50% over the estimate is significant.
Key statements by the CEO during the conference call.
"Zoom One adoption continued to accelerate and helped drive Zoom Phone to grow more than 100% year over year, surpassing 5.5 million seats in Q4,"
"While the macroeconomic situation continues to negatively impact our overall growth, we have maintained a healthy balance sheet and operating cash flow generation."
Future Guidance: Zoom sees 1Q revenue between $1.08 billion and $1.085 billion versus estimates of $1.11 billion. 1Q earnings are expected to be in a range of 96 cents to 98 cents per share versus the estimates of 84 cents per share.
Zoom expects full-year revenue to be between $4.435 billion and $4.455 billion versus estimates of $4.6 billion. The company expects full-year earnings to be between $4.11 and $4.18 per share versus estimates of $3.65 per share.
Below is a snapshot of 2024 guidance from their presentation on the conference call.
Technically speaking the stock has a lot of work to do but raising earnings expectations can go a long way. Currently the stock is holding the 55 simple moving average. A move above $81 can lead to a possible test of the 200 Simple moving average.
ARKK and ARKW both have a large stake in ZM. Combined they own 6% of all outstanding shares. ARKK second largest position is ZM with an 8% weighting. ARKW has it as its third largest position with a 7.2% weighting.
There were several other companies that are moving significantly after earnings. I cover them in the video below as well as what to look for in the indexes today. Also Tesla investor day and how to trade it.
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Wishing Everyone Massive Success in 2023 🍾