Shares of video communications technology company Zoom rose 16 percent in Monday’s extended trading after the company reported its first-quarter earnings which surpassed the estimates of analysts. The company also issued strong guidance for the ongoing quarter.
The company reported earnings of $1.04 per share compared to the 87 cents that analysts had expected for the quarter, according to Refinitiv. Revenue reported for the quarter was $1.07 billion, exactly what analysts had expected, according to Refinitiv.
Shares of Zoom were down about 85 percent from its October peak and have declined over 50 percent this year.
Zoom’s earnings are really impressive in a time when companies are suffering losses as a result of so many factors including supply chain challenges and the Russia-Ukraine war. This shows that the company was able to manage costs amid declining growth. The company’s earnings report come at a time when investors are looking to invest in tech stocks that can thrive amid rising inflation, interest rates, and supply chain challenges.
The company’s revenue growth in the first quarter which ended April 30 came in at 12 percent and was down almost 200 percent in the same quarter in 2021.
The company says it expects revenue of $1.115 billion to $1.12 billion which will represent a growth of about 10 percent. Analysts expect growth of 8.7 percent to $1.1 billion, according to Refinitiv. This means that Zoom’s estimate surpasses that of analysts. For earnings per share, Zoom says it anticipates it in the range of 90 to 92 cents. Analysts, on the other hand, expect it to come in at 87 cents.
Zoom expects revenue to come in between $4.53 billion and $4.55 billion for the full fiscal year. Analysts expect revenue for the fiscal year to come in at $4.55 billion. Earnings for the full fiscal year is expected to come in the range of $3.70 and $3.77 per share, while analysts project $3.53 according to Refinitiv.