Zoom Video Communications (ZM) reported April-quarter earnings that handily beat estimates, thanks to cost cutting moves. ZM stock climbed as revenue also topped Wall Street targets amid slowing growth.
Zoom earnings for the company’s first quarter rose 13% to $1.16 per adjusted per share. Revenue climbed 3% to $1.105 billion.
Sales growth slowed for the ninth-straight quarter as the company adjusts to slower product demand in the post-coronavirus emergency era. Analysts have debated when decelerating sales will hit a bottom.
A year earlier, Zoom earned $1.03 a share on sales of $1.074 billion.
Zoom stock analysts had projected earnings of 99 cents a share on sales of $1.084 billion for the period ended April 30.
ZM Stock: Revenue Guidance Tops Views
The company reported Zoom earnings after the market close on Monday. Zoom stock rose 3.9% to 74.05 in extended trading on the stock market today.
For the current quarter ending in July, Zoom said it expects earnings of $1.05 a share at the midpoint of its outlook, in line with estimates. The company forecast revenue of roughly $1.13 billion vs. estimates of $1.11 billion.
ZM stock had advanced 5% in 2023 heading into the earnings report.
Zoom’s cloud-based software sets up video calls, with chat tools available. Zoom Video aims to morph into a broader communications platform for business customers.
Zoom stock owns an IBD Relative Strength Rating of only 25 vs. a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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