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When lockdown orders were widespread during the pandemic, a handful of stocks massively benefited. It was a fascinating time to be an investor, and those who flocked to the stay-at-home type of stocks were rewarded handsomely with considerable gains.
One company’s shares that benefitted immensely was Zoom Video Communications (ZM - Free Report) .
Zoom Video Communications’ cloud-native unified communications platform, which combines video, audio, phone, screen sharing, and chat functionalities, makes remote-working and collaboration easy.
It’s easy to see why the company gained such interest. Now, it’s time for the company to unveil Q3 results on Monday, August 22nd, after market close.
How does the communications giant shape up heading into the quarterly print? Let’s take a closer look.
Share Performance & Valuation
The fun has come to a complete halt in 2022, with Zoom shares losing more than 40% of their value and coming nowhere near the general market’s performance.
Image Source: Zacks Investment Research
Even over the last month, when the S&P 500 rallied nearly 9%, Zoom shares have lagged, increasing by just 1.7% in value.
Image Source: Zacks Investment Research
In addition, Zoom shares trade at steep valuation multiples – its 6.7X forward price-to-sales ratio is undoubtedly on the high side, representing a massive 94% premium relative to its Zacks Computer and Technology Sector.
Still, the value is beneath its median of 31.7X since its IPO in April 2019.
Image Source: Zacks Investment Research
Quarterly Estimates
To a bit of a surprise, analysts have been quiet for the quarter to be reported, with zero estimate revisions hitting the tape over the last 60 days. The Zacks Consensus EPS Estimate of $0.92 reflects a steep 33% drop-off in quarterly earnings Y/Y.
Image Source: Zacks Investment Research
However, the company’s top line appears to be in much better shape, with the Zacks Consensus Sales Estimate of $1.1 billion reflecting a rock-solid 9.3% uptick from the year-ago quarter.
Quarterly Performance & Market Reactions
Zoom has been on a stellar earnings streak, impressively exceeding the Zacks Consensus EPS Estimate in 12 consecutive quarters. Just in its latest print, ZM registered a double-digit 17% bottom-line beat.
Top-line results have been even more impressive – Zoom has penciled in 13 consecutive top-line beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, for day-traders who prefer to play the long side, know this – shares have moved downwards following five of its previous six quarterly reports.
Putting Everything Together
It’s been quite the fall from glory for Zoom shares in 2022, down by more than 40%. Even over the last month, shares have lagged the S&P 500’s rally.
Furthermore, ZM shares trade at steep valuation multiples, nowhere near their Zacks Sector average.
Analysts have been quiet for the quarter to be reported, but estimates reflect a declining bottom-line and an increasing top-line.
Impressively, the company has chained together a large streak of top and bottom-line beats, but the market hasn’t reacted favorably following the prints as of late.
Heading into the release, Zoom Video Communications (ZM - Free Report) carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
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Zoom Q3 Preview: Can Shares Find New Life?
When lockdown orders were widespread during the pandemic, a handful of stocks massively benefited. It was a fascinating time to be an investor, and those who flocked to the stay-at-home type of stocks were rewarded handsomely with considerable gains.
One company’s shares that benefitted immensely was Zoom Video Communications (ZM - Free Report) .
Zoom Video Communications’ cloud-native unified communications platform, which combines video, audio, phone, screen sharing, and chat functionalities, makes remote-working and collaboration easy.
It’s easy to see why the company gained such interest. Now, it’s time for the company to unveil Q3 results on Monday, August 22nd, after market close.
How does the communications giant shape up heading into the quarterly print? Let’s take a closer look.
Share Performance & Valuation
The fun has come to a complete halt in 2022, with Zoom shares losing more than 40% of their value and coming nowhere near the general market’s performance.
Image Source: Zacks Investment Research
Even over the last month, when the S&P 500 rallied nearly 9%, Zoom shares have lagged, increasing by just 1.7% in value.
Image Source: Zacks Investment Research
In addition, Zoom shares trade at steep valuation multiples – its 6.7X forward price-to-sales ratio is undoubtedly on the high side, representing a massive 94% premium relative to its Zacks Computer and Technology Sector.
Still, the value is beneath its median of 31.7X since its IPO in April 2019.
Image Source: Zacks Investment Research
Quarterly Estimates
To a bit of a surprise, analysts have been quiet for the quarter to be reported, with zero estimate revisions hitting the tape over the last 60 days. The Zacks Consensus EPS Estimate of $0.92 reflects a steep 33% drop-off in quarterly earnings Y/Y.
Image Source: Zacks Investment Research
However, the company’s top line appears to be in much better shape, with the Zacks Consensus Sales Estimate of $1.1 billion reflecting a rock-solid 9.3% uptick from the year-ago quarter.
Quarterly Performance & Market Reactions
Zoom has been on a stellar earnings streak, impressively exceeding the Zacks Consensus EPS Estimate in 12 consecutive quarters. Just in its latest print, ZM registered a double-digit 17% bottom-line beat.
Top-line results have been even more impressive – Zoom has penciled in 13 consecutive top-line beats. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, for day-traders who prefer to play the long side, know this – shares have moved downwards following five of its previous six quarterly reports.
Putting Everything Together
It’s been quite the fall from glory for Zoom shares in 2022, down by more than 40%. Even over the last month, shares have lagged the S&P 500’s rally.
Furthermore, ZM shares trade at steep valuation multiples, nowhere near their Zacks Sector average.
Analysts have been quiet for the quarter to be reported, but estimates reflect a declining bottom-line and an increasing top-line.
Impressively, the company has chained together a large streak of top and bottom-line beats, but the market hasn’t reacted favorably following the prints as of late.
Heading into the release, Zoom Video Communications (ZM - Free Report) carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B.