Bank of America analyst Koji Ikeda downgraded ZoomInfo (NASDAQ:ZI) stock this morning after the company’s disappointing second-quarter earnings call yesterday. Indeed, Koji lowered ZI stock’s rating from “buy” to “underperform” while also dropping the price target to just $8 per share from $23.
Not alone, scores of investment banks are lowering their estimations of ZoomInfo’s worth following the company’s earnings miss. This includes the likes of Mizuho, RBC Capital, Needham, Piper Sandler, Deutsche Bank and others. All of these firms lowered their respective price targets on ZI stock this morning.
Reasonably so, ZoomInfo’s Q2 earnings report was, in a word, disastrous. The software and data company reported quarterly EPS of 17 cent, an earnings surprise miss of -29% compared with estimates for 24 cents. It’s also a retreat from the company’s EPS of 26 cents reported a year ago.
ZoomInfo also missed on revenue, reporting sales of $291.5 million. This came in lower than the company’s year-ago revenue of $308.6 million as well as slightly lower than estimates.
ZI Stock Continues to Retract Following Earnings Miss
Unsurprisingly, investors have punished ZI stock in the wake of the company’s earnings miss. Indeed, ZI is down 18% at the time of this writing, bringing the stock further into the red by 55% so far this year. That is well below the S&P 500, which is currently up 11% year-to-date (YTD).
Still, the company did try to focus on the positives of its past quarter, including a new deal with Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google.
“The past 12 months have marked one of the most innovative periods in our company’s history. As we successfully launched ZoomInfo Copilot, our AI-powered offering that combines our best-in-class proprietary data set with first-party data from our customers’ sales and marketing systems, and digital buying signals to offer sales teams the best insight about their buyers,” said ZoomInfo founder and CEO Henry Schuck.
On the date of publication, Shrey Dua 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
