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Zoom Gains on Upbeat Earnings & View: ETFs in Focus
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On Aug 21, Zoom Video Communications (ZM - Free Report) came out with upbeat quarterly results. The management also pushed up full-year guidance. Shares gained 3.6% after hours.
For the quarter ended July 2023, Zoom Video reported revenue of $1.14 billion, up 3.6% over the same period last year. EPS came in at $1.34, compared to $1.05 in the year-ago quarter. The reported revenue represents a surprise of +2.29% over the Zacks Consensus Estimate of $1.11 billion. With the consensus EPS estimate being $1.05, the EPS surprise was +27.62%.
Management boosted Zoom’s full-year forecast. Management now sees $4.63 to $4.67 in adjusted earnings per share and $4.485 billion to $4.495 billion in revenue for the full 2024 fiscal year. The revenue range implies 2% growth at the middle of the range.
Three months ago, Zoom said it was looking for $4.25 to $4.31 in adjusted earnings per share and $4.465 billion to $4.485 billion in revenue. Analysts polled by Refinitiv had predicted that Zoom would produce $4.30 in adjusted earnings per share and $4.49 billion in revenue, as quoted on CNBC.
“Our increased total revenue guidance reflects a consistent view on enterprise, with tempered expectations for online for the remainder of the year,” Kelly Steckelberg, Zoom’s finance chief, said on a conference call with analysts, quoted on the CNBC article.
Against this backdrop, below we highlight a few ETF that are heavy on Zoom and may benefit from the spike in Zoom’s share price.
ARKK is an actively managed Exchange Traded Fund that looks to track long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation. The fund charges 75 bps in fees. Zoom takes the second spot in the fund.
ARK Next Generation Internet ETF (ARKW - Free Report) ) – Zoom’s Weight 6.13%
ARKW is an actively managed Exchange Traded Fund that looks to offer long-term growth of capital by investing under normal circumstances primarily (at least 80% of its assets) in domestic and U.S. exchange-traded foreign equity securities of companies that are relevant to the Fund’s investment theme of next generation internet. Zoom takes the fourth spot in the fund. The fund charges 88 bps in fees.
SPRX invests in companies that look to benefit from breakthrough trends in industrial technology. Zoom takes the tenth spot in the fund. The fund charges 75 bps in fees.
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Zoom Gains on Upbeat Earnings & View: ETFs in Focus
On Aug 21, Zoom Video Communications (ZM - Free Report) came out with upbeat quarterly results. The management also pushed up full-year guidance. Shares gained 3.6% after hours.
For the quarter ended July 2023, Zoom Video reported revenue of $1.14 billion, up 3.6% over the same period last year. EPS came in at $1.34, compared to $1.05 in the year-ago quarter. The reported revenue represents a surprise of +2.29% over the Zacks Consensus Estimate of $1.11 billion. With the consensus EPS estimate being $1.05, the EPS surprise was +27.62%.
Management boosted Zoom’s full-year forecast. Management now sees $4.63 to $4.67 in adjusted earnings per share and $4.485 billion to $4.495 billion in revenue for the full 2024 fiscal year. The revenue range implies 2% growth at the middle of the range.
Three months ago, Zoom said it was looking for $4.25 to $4.31 in adjusted earnings per share and $4.465 billion to $4.485 billion in revenue. Analysts polled by Refinitiv had predicted that Zoom would produce $4.30 in adjusted earnings per share and $4.49 billion in revenue, as quoted on CNBC.
“Our increased total revenue guidance reflects a consistent view on enterprise, with tempered expectations for online for the remainder of the year,” Kelly Steckelberg, Zoom’s finance chief, said on a conference call with analysts, quoted on the CNBC article.
Against this backdrop, below we highlight a few ETF that are heavy on Zoom and may benefit from the spike in Zoom’s share price.
ETFs in Focus
ARK Innovation ETF (ARKK - Free Report) ) – Zoom’s Weight 7.55%
ARKK is an actively managed Exchange Traded Fund that looks to track long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation. The fund charges 75 bps in fees. Zoom takes the second spot in the fund.
ARK Next Generation Internet ETF (ARKW - Free Report) ) – Zoom’s Weight 6.13%
ARKW is an actively managed Exchange Traded Fund that looks to offer long-term growth of capital by investing under normal circumstances primarily (at least 80% of its assets) in domestic and U.S. exchange-traded foreign equity securities of companies that are relevant to the Fund’s investment theme of next generation internet. Zoom takes the fourth spot in the fund. The fund charges 88 bps in fees.
Spear Alpha ETF (SPRX - Free Report) ) – Weight 4.74%
SPRX invests in companies that look to benefit from breakthrough trends in industrial technology. Zoom takes the tenth spot in the fund. The fund charges 75 bps in fees.