Zoom Video Communications offered up a mixed bag for its Q2 earnings release late Monday, but the market chose to focus instead on weaker guidance for the third quarter.
ZM shares have dropped as much as 9.8% to $87.88 in Tuesday’s premarket. Adjusted EPS of $1.05 was well ahead of the $0.93 called for by analysts, but revenue for the quarter was $17.6 million short of the $1.12 billion consensus figure.
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To top it off, management guided Q3 results to $0.82 or $0.83 on sales of $1.095 billion to $1.10 billion. In other words, executives see earnings falling 20% QoQ and revenue remaining flat.
Zoom Video Communications (ZM) stock is off 2% at $97.55 ahead of fiscal second quarter 2023 earnings expected after the close on Monday. The sell-off seems less attributable to earnings expectations than pessimism about the overall market. Nasdaq futures are down 1.5% at the time of writing.
Source- FxStreet
