Zoom Communications Inc. (ZM) is set to report third-quarter earnings after the closing bell on Monday, and Wall Street's watching to see if the video communications company can keep its momentum going.
Analysts are expecting the San Jose, California-based company to post quarterly earnings of $1.44 per share, representing a modest uptick from the $1.38 per share reported in the same period last year. Revenue estimates are sitting at $1.21 billion, compared to $1.18 billion a year earlier, according to market data.
Leading up to the earnings release, the company made some strategic moves worth noting. On October 13, Zoom announced a strategic go-to-market partnership with Oracle designed to help enterprises scale their customer engagement operations. It's the kind of move that signals Zoom is thinking beyond just being the video call company everyone discovered during lockdowns.
The stock closed Thursday at $78.42, down 2.8% for the session.
What the Most Accurate Analysts Are Saying
Several analysts with strong track records have weighed in on Zoom recently, and the outlook is cautiously optimistic. Here's how the top-rated analysts are positioned:
Citigroup analyst Tyler Radke, who has a 69% accuracy rate, maintained a Neutral rating on November 17 while raising his price target from $85 to $94. That's a meaningful bump that suggests improving sentiment even if he's not ready to get outright bullish.
Rosenblatt analyst Catharine Trebnick remains one of the more optimistic voices, maintaining a Buy rating and lifting her price target from $110 to $115 on November 11. With a 68% accuracy rate, Trebnick clearly sees upside potential beyond current levels.
Wells Fargo analyst Ryan Macwilliams initiated coverage on October 1 with an Equal-Weight rating and a $90 price target. His 61% accuracy rate puts him in solid territory for reliability.
Cantor Fitzgerald analyst Thomas Blakey reiterated a Neutral rating with an $87 price target on September 18. Blakey sports a 68% accuracy rate and seems content to stay on the sidelines for now.
JMP Securities analyst Patrick Walravens also reiterated a Market Perform rating on September 18, bringing a 60% accuracy rate to his neutral stance on the stock.
The pattern here is interesting: most analysts are maintaining neutral ratings, but several are quietly raising their price targets. That suggests they see the valuation improving even if they're not ready to pound the table on the stock just yet. Monday's earnings report should give them more data to work with.