The bad news for ZM stock mainly comes from its revenue of $1.1 billion, which missed Wall Street’s estimate of $1.12 billion. However, it did still represent an 8% increase compared to the $1.02 billion reported in the same period last year.
That’s a shame, as the company’s adjusted earnings per share (EPS) of $1.05 did beat analysts’ estimate of 93 cents per share. That’s despite its adjusted EPS decreasing 23% from the $1.36 in Q2 fiscal 2022.
The outlook for Q3 fiscal 2023 is not helping ZM stock today either. The company expects revenue to range from $1.09 billion to $1.1 billion during the period. That doesn’t look good next to Wall Street’s estimate of $1.15 billion for the quarter.
To go along with that, Zoom’s revenue outlook fiscal full-year 2023 is between $4.385 billion and $4.395 billion. That’s also below analysts’ revenue estimate of $4.54 billion for the year.
Headwinds Are Holding ZM Stock Back
Kelly Steckelberg, CFO of Zoom, said the following in the company’s earnings report:
“The headwinds we saw mainly relate to the strengthening dollar, new Online subscriptions, and to a lesser extent bookings linearity. We have implemented initiatives focused on driving new Online subscriptions, which have shown early promise but were not enough to overcome the macro dynamics in the quarter.”
Today’s poor earnings report brings with it heavy trading of ZM stock. Currently, more than 7 million shares have changed hands as of this morning. For comparison, the company’s daily average trading volume is about 5 million shares.
ZM stock is down more than 11% as of Tuesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.