Wall Street analysts expect Zoom Communications (ZM) to post quarterly earnings of $1.37 per share in its upcoming report, which indicates a year-over-year decline of 1.4%. Revenues are expected to be $1.2 billion, up 3% from the year-ago quarter.
Over the last 30 days, there has been a downward revision of 1.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Zoom metrics that Wall Street analysts commonly model and monitor.
The consensus among analysts is that 'Geographic Revenue- Asia Pacific (APAC)' will reach $146.13 million. The estimate indicates a year-over-year change of +2.7%.
Analysts predict that the 'Geographic Revenue- Europe, Middle East, and Africa (EMEA)' will reach $190.04 million. The estimate points to a change of +3% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Geographic Revenue- Americas' of $862.08 million. The estimate points to a change of +3.2% from the year-ago quarter.
The average prediction of analysts places 'Enterprise Customers' at 186,862 . The estimate compares to the year-ago value of 191,600 .
The combined assessment of analysts suggests that 'Customers >$100K TTM Revenue' will likely reach 4,233 . Compared to the current estimate, the company reported 3,933 in the same quarter of the previous year.
Analysts expect 'Current Remaining performance obligation (RPO)' to come in at $2.45 billion. The estimate is in contrast to the year-ago figure of $2.28 billion.
Based on the collective assessment of analysts, 'Remaining Performance Obligations (RPO)' should arrive at $4.00 billion. The estimate compares to the year-ago value of $3.78 billion.
Analysts forecast 'Non-Current Remaining performance obligation (RPO)' to reach $1.53 billion. Compared to the present estimate, the company reported $1.50 billion in the same quarter last year.
View all Key Company Metrics for Zoom here>>>
Zoom shares have witnessed a change of -2.3% in the past month, in contrast to the Zacks S&P 500 composite's +3.5% move. With a Zacks Rank #3 (Hold), ZM is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Zoom Communications, Inc. (ZM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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