Zoom Video Communications (NASDAQ:ZM) stock is receiving some chatter on Wednesday morning. And despite shares being down slightly on the day, the volume of shares traded on the day has reached almost 3.3 million.
Both the company and the stock have received a nice boost since the beginning of the novel coronavirus pandemic in March 2020. However, after touching a high of $588.84 per share in October, ZM stock has fallen back to $325 per share.
With all of that in mind, what is making ZM stock popular today? Let’s dive in and find out.
- ZM stock is currently one of the top trending tickers on Yahoo! Finance.
- This comes after the company reported earnings for the first quarter of fiscal year 2022 on Tuesday evening.
- The results included revenue of $956.2 million, an increase of 191% year-over-year, which beat out estimates of $906 million.
- This is an impressive rise, but revenue grew 369% in the previous quarter — pointing toward a slowdown in business as the pandemic also fades.
- Additionally, earnings per share (EPS) reached $1.32 for the quarter.
- This blew past analysts’ estimates for EPS of 99 cents.
- Moreover, Zoom mentioned some financial guidance for Q2 of FY2022.
- This has the firm expecting revenue between $985 million and $990 million, and EPS between $1.14 and $1.15.
- Meanwhile, Wall Street is looking for revenue of $931.74 million and EPS of 94 cents for the period.
- The company also raised their guidance for FY2022, including an expected revenue range of $3.975 billion to $3.99 billion and EPS between $4.56 and $4.61.
- That said, analysts are expecting revenue of $3.8 billion and EPS of $3.76 for the year.
Eric S. Yuan, founder and CEO of Zoom, said this about the ZM stock earnings.
“We kicked off the fiscal year with a very strong first quarter, posting 191% total year-over-year revenue growth combined with strong profitability and cash flow. Our steadfast commitment to empowering customers to work and learn from anywhere with our expansive, innovative, and frictionless video communications platform continued to drive our results.”
ZM stock was up less than 1% as of Wednesday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick is a web editor at InvestorPlace.