Zoom Video Communications stock rose around 25 percent in after-hours trading yesterday after the company announced its earnings results for fiscal 2021's second quarter (ended July 31). The company's results were better than expected and it raised its fiscal 2021 guidance significantly.
In the second quarter, Zoom reported adjusted EPS of $0.92, compared with $0.08 in the second quarter of fiscal 2020. The adjusted EPS beat analysts’ consensus estimate of $0.45. Zoom generated sales of $663.52 million in the second quarter, 355 percent more than it did in the second quarter of fiscal 2020. The company beat analysts’ average sales estimate of $500.5 million.
What is Zoom Video Communications?
Zoom Video Communications is a technology company based in San Jose, Calif. It provides video conferencing and online chat services. The company’s revenue grew significantly in the second quarter after COVID-19 lockdowns made people more dependent on its video calling software for educational, business, and personal use.
In the second quarter, Zoom’s average monthly active user count rose 4,700 percent year-over-year to 148.4 million. For fiscal 2021, the company now expects revenue and adjusted EPS of $2.37 billion–$2.39 billion and $2.40–$2.47, respectively. Wall Street had earlier expected revenue and adjusted EPS of $1.81 billion and $1.30, respectively.
Zoom stock rises after hours
Yesterday, Zoom stock rose about 25 percent in after-hours trading, boosted by the company beating Wall Street’s earnings and revenue estimates for the second quarter.
What is Zoom's stock price today?
In premarket trading today, Zoom stock was up about 26.7 percent at $412. The stock rose 8.6 percent on Aug. 31 and closed at $325.10 with a market capitalization of $84.4 billion. The stock has risen by 11.9 percent in the last five days and 251.6 percent in the last year. Zoom stock is trading 0.2 percent below its 52-week high of $325.90 and 433.2 percent above its 52-week low of $60.97. Year-to-date, the stock has risen by 377.8 percent.
What is Zoom's stock forecast?
Currently, analysts' average price forecast for Zoom stock is $249.49, which suggests a 23.3 percent downside. Their peak target price for Zoom of $735 suggests a 126.1 percent upside, and their lowest estimate of $156.25 suggests a 51.9 percent downside. Analysts' average rating for Zoom is “moderate buy.”
Who is Zoom's CEO, and what is his net worth?
Zoom's current CEO is Eric Yuan. According to Forbes, Yuan’s net worth is $14.4 billion. Today, Yuan got $4.2 billion richer after Zoom stock surged.