Insights Ahead: Zoom Video Comms's Quarterly Earnings

Zoom Video Comms ZM is preparing to release its quarterly earnings on Wednesday, 2025-05-21. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Zoom Video Comms to report an earnings per share (EPS) of $1.31.

The announcement from Zoom Video Comms is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.11, leading to a 8.48% drop in the share price on the subsequent day.

Here's a look at Zoom Video Comms's past performance and the resulting price change:

Zoom Video Comms Share Price Analysis

Shares of Zoom Video Comms were trading at $83.31 as of May 19. Over the last 52-week period, shares are up 28.82%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Opinions on Zoom Video Comms

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Zoom Video Comms.

A total of 16 analyst ratings have been received for Zoom Video Comms, with the consensus rating being Neutral. The average one-year price target stands at $85.12, suggesting a potential 2.17% upside.

Peer Ratings Comparison

In this analysis, we delve into the analyst ratings and average 1-year price targets of Tyler Technologies, Samsara and PTC, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Tyler Technologies, with an average 1-year price target of $685.38, suggesting a potential 722.69% upside.
• Analysts currently favor an Outperform trajectory for Samsara, with an average 1-year price target of $48.8, suggesting a potential 41.42% downside.
• Analysts currently favor an Outperform trajectory for PTC, with an average 1-year price target of $181.0, suggesting a potential 117.26% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for Tyler Technologies, Samsara and PTC, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Zoom Video Communications ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Zoom Video Communications is at the bottom compared to its peers.

Unveiling the Story Behind Zoom Video Comms

Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

Financial Insights: Zoom Video Comms

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Positive Revenue Trend: Examining Zoom Video Comms's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.29% as of 31 January, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 31.07%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Zoom Video Comms's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 4.18%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Zoom Video Comms's ROA excels beyond industry benchmarks, reaching 3.4%. This signifies efficient management of assets and strong financial health.

Debt Management: Zoom Video Comms's debt-to-equity ratio is below the industry average at 0.01, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Zoom Video Comms visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.