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Zoom Video Communications Inc. (NASDAQ: ZM) published its earnings report for the fiscal fourth quarter on Monday that came in better than what analysts had anticipated. The company attributed its hawkish performance to the ongoing COVID-19 crisis that fuelled demand for video communication.

Zoom shares jumped close to 8% in after-hours trading on Monday. Including the price action, the stock is now trading at a per-share price of £319.92 versus £259.39 per share at the start of the year. Here’s what you need to know about why do prices rise and fall in the stock market.

Zoom’s Q4 financial results versus analysts’ estimates

Zoom Video Communications said that its net income in the fourth quarter printed at £187.63 million, or 62.69 pence per share. In the same quarter last year, its net income stood at a significantly lower £11.02 million. In the prior quarter (Q3), Zoom registered £560 million of revenue and 71.33 pence per share of earnings.

On an adjusted basis, the U.S. company earned 88 pence per share in Q4 versus the year-ago figure of 10.81 pence per share. Zoom valued its revenue in the recent quarter at £635.87 million that represents a massive 369% year over year growth.

According to FactSet, experts had forecast the company to report £585.07 million of revenue in the fourth quarter. Their estimate for adjusted per-share earnings stood at a lower 56.92 pence. In an announcement in January, Zoom expressed plans of a £1.10 billion secondary share sale.

Zoom Video Communications’ guidance for fiscal 2021

For fiscal 2020 as a whole, the San-Jose based company recorded £1.91 billion of sales and £2.41 per share of adjusted earnings. For 2021, Zoom now forecasts its revenue to fall in the range of £2.71 billion to £2.72 billion. It expects up to £2.63 of full-year adjusted per-share profit.

In comparison, analysts are calling for £2.53 billion of sales for Zoom Video Communications in 2021 and £2.13 of adjusted earnings per share. Zoom expects up to £652.08 million of revenue in Q1 and roughly 69.89 pence of adjusted EPS that also topped experts’ forecast.

Zoom performed massively upbeat in the stock market last year with an annual gain of roughly 400%. At the time of writing, the American communications technology company is valued at £85.92 billion and has a price to earnings ratio of 285.36.

The post Zoom beats Wall Street estimates in the fiscal fourth quarter appeared first on Invezz.



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