Zoom rises as Wall Street says company is 'slowly' delivering
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Zoom Video Communications (NASDAQ:ZM) shares rose more than 3% in pre-market trading on Tuesday after reporting second-quarter results, resulting in several Wall Street firms pointing out that the communications software platform is "slowly" returning to growth. 
Bernstein analyst Peter Weed, who has a market perform rating on Zoom (ZM), said it looks like the slowdown in growth has "bottomed" and the company is "starting to show some (slow) bounce back."
"We believe the biggest risk (and opportunity) is whether ZM can deliver mid-teens growth, [and] high profitability while doing it," Weed wrote in an investor note. "As a growing cash cow, they could be attractive. But given the risks and uncertainty between here and there on execution, potential M&A, and operating desires, we continue to see the risk to the upside case."
Wells Fargo analyst Michael Turrin, who has an equal-weight rating and $80 price target on Zoom (ZM), said the company's key metrics - including slowing enterprise customer and revenue growth, enterprise expansion rates and seat churn - continue to weaken, but there has been some "divergence" amongst its segments that could be signs of a turnaround. 
Additionally, Zoom Phone surpassed the $500M run rate in the quarter, which suggests double-digit sequential growth, or roughly 50% year-over-year growth. 
Bank of America analyst Michael Funk, who has a neutral rating on Zoom (ZM), also noted that the company beat "across the board" and looks to be turning a corner, as enterprise customer count increased by roughly 2,200 sequentially to 218,1000 and operating margins rose by roughly 380 basis points.
For the period ending July 31, Zoom (ZM) earned $1.34 per share, excluding one-time items, as revenue rose 3.6% year-over-year to $1.14B. Analysts were expecting adjusted earnings of $1.06 per share and $1.1B in revenue.
Looking to the third-quarter, the company expects sales to be between $1.115B and $1.12B or $1.117B and $1.122B on a constant currency basis. Adjusted earnings are forecast to be between $1.07 and $1.09 per share.
Analysts were expecting earnings of $1.03 per share and $1.12B in revenue. 
Zoom (ZM) also boosted its full-year guidance, as it now sees sales falling within a range of between $4.485B and $4.495B, compared to the $4.48B estimate. It previously saw sales within a range of $4.465B and $4.485B.