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Zoom shares exceed forecasts ahead of first quarter earnings

Zoom

Zoom Video Communications will unveil its Q1 earnings on Tuesday 1 June, with the stock already exceeding analysts’ target prices if it delivers a strong set of quarterly results

The video conferencing provider has seen its share exceed analysts’ price targets, with the stock capable of extending its gains if it delivers a strong set of quarterly earnings on Tuesday.

Zoom Video Communications will unveil its first quarter (Q1) earnings on Tuesday 1 June, with the stock already exceeding analysts’ target prices and capable of rallying even higher if it delivers a strong set of quarterly results.

The 22 analysts offering 12-month price forecasts for Zoom have a median target of $137.50 and a high estimate of $200, with the video conferencing company trading at $203.29 per share at the time of publication.

Wall Street analysts are expecting Zoom to deliver an earnings per share (EPS) of $0.10 on $202.5 million in Q1 sales – the company managed to exceed forecasters estimates in its previous quarter back in March, which helped drive a 60% gain for the stock in the week that followed.

If the video conferencing company can beat analysts’ expectations for another consecutive quarter it’s could help propel the stock even higher in weeks ahead, with investors also eager for an update on its full-year guidance.

Since the start of the year, Zoom shares have climbed 195%, with the stock climbing 13% higher on Monday alone, ahead of the company’s latest quarterly earnings.

The company has come out on top amid the Covid-19 crisis and subsequent government-imposed lockdowns, which have forced businesses to invest heavily in video conferencing solutions with employees stuck working from home for the foreseeable future.

The shift in the way businesses are conducting work amid the Covid-19 pandemic has helped generate a strong increase in sales for the video conferencing company, but investors are eager to see if this uptick in revenues will remain as lockdown restrictions ease and people return to offices.

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