Zoom Faces Ongoing Macro Challenges: 6 Analysts Takeaways On Q4 Earnings
Portfolio Pulse from Priya Nigam
Zoom Video Communications Inc (NASDAQ:ZM) reported higher-than-expected sales and earnings for the fiscal fourth quarter, leading to a 7.37% increase in its stock price to $67.77. Analysts from Goldman Sachs, JPMorgan, Wedbush, KeyBanc Capital Markets, Oppenheimer, and Needham provided insights, with most maintaining a Neutral or equivalent rating and adjusting price targets. The company's FY25 revenue guidance was slightly below consensus, but its cash flow guidance exceeded expectations. Analysts highlighted Zoom's solid performance in the Enterprise segment and potential growth drivers, despite ongoing macro challenges.
February 27, 2024 | 5:31 pm
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Zoom Video Communications Inc reported higher-than-expected Q4 sales and earnings, leading to a 7.37% stock price increase. Analysts maintain mostly Neutral ratings, with slight adjustments in price targets. The company's FY25 revenue guidance is slightly below consensus, but cash flow expectations are positive. Enterprise growth and new product trends are highlighted as potential growth drivers.
The positive earnings report and the subsequent stock price increase indicate a short-term bullish sentiment for Zoom. Analysts' mostly Neutral ratings and the slight adjustments in price targets reflect a cautious optimism. The company's solid performance in the Enterprise segment and the positive cash flow guidance are key factors supporting the stock's short-term potential. However, the slightly lower FY25 revenue guidance suggests some caution, mitigated by the positive outlook on new product trends and growth drivers.
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