Home News Zoom Video Stock Soars as Company Releases Upbeat Earnings Guidance – Watch This Key Level

Zoom Video Stock Soars as Company Releases Upbeat Earnings Guidance – Watch This Key Level

by SuperiorInvest

Key takeaways

  • Zoom Video shares rose in after-hours trading Monday after the company beat analysts' quarterly estimates and issued better-than-expected current-quarter and full-year earnings guidance amid rising demand for its growing range of AI-enhanced products.
  • The company authorized a repurchase of up to $1.5 billion of its outstanding Class A common stock.
  • Zoom Video stock price may encounter resistance around $74.50 from the upper trend line of a 10-month trading range.

Zoom Video (ZM) shares rose more than 10% in after-hours trading on Monday after the company beat analysts' quarterly estimates and issued better-than-best current-quarter and full-year earnings guidance. expected amid growing demand for its expanding AI. Improved product range.

The company, which rose to fame during the pandemic for its video conferencing software, revealed fiscal fourth-quarter adjusted earnings of $1.22 per share on revenue of $1.15 billion. Wall Street expected earnings of $1.15 per share on sales of $1.13 billion.

Looking ahead to the current quarter, the San Jose, California-based company projects adjusted earnings per share to range between $1.18 and $1.20, and the low end of that forecast handily beat analyst expectations of $1. .13 dollars per share. However, guided revenue for the period of $1.125 billion represents growth of less than 2% year-over-year and falls slightly below the consensus view of $1.13 billion.

For the full fiscal year, Zoom provided adjusted earnings guidance of $4.85 to $4.88 per share on revenue of $4.60 billion compared to analyst expectations of $4.71 per share in earnings on revenue of $4.65 billion.

Zoom, which launched its generative artificial intelligence (AI) digital assistant, AI Companion, in September last year, said it remains focused on implementing the technology across its suite of products. “We are committed to democratizing the accessibility of AI, offering it to all our customers, regardless of business size, included at no additional cost with a paid license,” Zoom founder and CEO Eric Yuan said in the statement. company profits.

In a post-earnings call, Yuan told analysts that the video conferencing software maker plans to expand its range of AI-related products this year. “We are also going to create new services and are powered by the Zoom AI companion. This year we are going to double down on Zoom AI personalization and also focus on monetization,” he said.

The company also authorized a repurchase of up to $1.5 billion of its outstanding Class A common stock.

ZM stock has fluctuated roughly within a 14-point trading range over the past 10 months, helping establish clear support and resistance levels on the chart. More recently, the price bounced off the lower trend line of the pattern due to increased volume ahead of the company's earnings release. Amid further rise, watch the upper trendline of the range around $74.50 as a potential area of ​​resistance.

The stock gained 10.4% to $69.68 in after-hours trading on Monday.

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As of the date of writing this article, the author does not hold any of the above securities.

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