Shares of video communications platform Zoom Video (NASDAQ:ZM) were little changed in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2025. Earnings per share came in at $1.35, which beat analysts’ consensus estimate of $1.19 per share. Interestingly, ZM has beaten expectations every quarter since August 2020:
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Sales increased by 2.7% year-over-year, with revenue hitting $1.14 billion. This beat analysts’ expectations by $10 million.
Looking forward, management now expects revenue and adjusted earnings per share for Q2 2025 to be in the ranges of $1.145 billion to $1.15 billion and $1.20 to $1.21, respectively. For reference, analysts were expecting $1.151 billion in revenue along with an adjusted EPS of $1.22.
Is Zoom a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on ZM stock based on seven Buys, 16 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 10% decline in its share price over the past year, the average ZM price target of $78.05 per share implies 21.69% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
Is It Wise to Allocate $1,000 Toward ZM Stock Right Now?
Before you hurry to invest in ZM, think about the following:
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