Will Zoom Video Communications' Q4 Earnings slowing growth take the stock lower presenting Buy opportunity?
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Zoom Video Communications (NASDAQ:ZM) is scheduled to announce Q4 earnings results on Monday, February 28th, after market close.
The consensus EPS Estimate is $1.07 (-12.3% Y/Y) and the consensus Revenue Estimate is $1.05B (+19.0% Y/Y).
Over the last 2 years, ZM has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 17 upward revisions and 5 downward. Revenue estimates have seen 2 upward revisions and 0 downward.
For Q4, the company expects to earn between $1.06-1.07 a share, excluding one-time items, on revenue in a range of $1.051B-1.053B; this is in comparison to Q3 revenue of $1.05B while EPS was $1.11.

Analysts' consensus estimates for Q4 revenue stand at $1.05B and EPS stand at $1.07.
As investors continue to move out of stay-at-home stocks, Zoom faced a lull in performance despite the company believing it is in the perfect position to capitalize on the structural changes the pandemic is causing by normalizing remote and hybrid working and growing the need for unified communications.
Q4 may see growth from expansion in net dollar expansion rate as existing customers with 10+ employees have increased their spending on Zoom products; also the number that contributes $100K+ in annual revenue for Zoom is expected to rise.
While the Zoom Video stock recently stooped to its 52-week low levels amid concerns about slowing sales growth and increasing competition, investors worry if sell-off has been justified or is the stock now a buy.
In past 6-months trading, the stock lost 62.7% and 1-month erosion stood at 17%; Wall Street Analysts currently have a Buy rating however out of 29 total analysts - 12 have buy and 12 have hold rating
With SA Author's having a common Hold rating ground in this month, SA Contributor Daniel SchÃ¶nberger recently said that Zoom may not be a great investment but it is fairly valued, while Loft Capital Management analyzes why they are staying away from the stock for now; LBMF Invest indicates that slowing growth will be permanent for Zoom.