Zoom Video Communications Inc. executives increased their annual profit forecast after an earnings beat Monday, but undershot expectations for the fourth quarter, leading to shares tumbling 5% in after-hours trading.
Zoom executives said they now expect full-year adjusted earnings of $3.91 to $3.94 a share on revenue of $4.37 billion to $4.38 billion, after previously targeting adjusted earnings of $3.66 to $3.69 a share on revenue of $4.39 to $4.4 billion. For the fourth quarter, they expect 75 to 78 cents a share on revenue of roughly $1.1 billion, while analysts on average are projecting 81 cents a share on sales of $1.1 billion, according to FactSet.
Zoom’s stock rose about 4% following release of the results, but then slid back to a decline of 5% in extended trading after closing with a 1.7% decline at $80.26. Zoom’s stock has withered 56% this year, as the broader S&P 500 index SPX, -0.39% has slid 17% in 2022. In forecasting “near flattish revenue growth next year,” Citi Research analyst Tyler Radke outlined numerous obstacles Zoom faces in the pandemic’s post-vaccine recovery. Tightening IT budgets and a weaker macro outlook keep will keep new small-business customer acquisitions “low and churn elevated,” he said in a Nov. 18 note.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »