Why did Zoom Video stock go up today? Guidance boost assuages fears
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Zoom Video Communications (NASDAQ:ZM) shares closed higher on Tuesday after the communications software provider posted fiscal first-quarter results that beat estimates and raised its full-year earnings guidance.
For the period ending April 30, Zoom (ZM) said it earned $1.03 a share, excluding one-time items, on $1.07 billion in revenue, up 12% year-over-year.
A consensus of Wall Street analysts expected Zoom (ZM) to earn 87 cents a share on $1.07 billion in sales.
Zoom (ZM) shares closed up more than 5.5% to finish at $94.41.
For the second-quarter, Zoom (ZM) said it expects to earn between 90 and 92 cents a share, on revenue of around $1.12 billion, while analysts had forecast the company to earn 87 cents a share, on $1.1 billion in sales.
Zoom (ZM) also raised its full-year earnings guidance, saying it now expects earnings per share for the 2023 fiscal year to be between $3.70 and $3.77 a share, compared to a previous outlook of between $3.45 and $3.51 a share.
Revenue is still forecast to be between $4.53 billion and $4.55 billion, compared to estimates of $4.54 billion.
Ark Invest and Cathie Wood purchased slightly less than 100,000 shares of the California-based Zoom (ZM) on Monday.

Prior to earnings, investment firm Piper Sandler lowered its price target on Zoom (ZM) shares by almost 40%, while downgrading the stock to neutral from overweight.