Zoom Q3 earnings preview: Extra bottom-line stress in post-pandemic world (NASDAQ:ZM)

Zoom Video Communications (NASDAQ:ZM) is scheduled to announce Q3 earnings outcomes on Monday, November twenty first, after market shut.

The consensus EPS Estimate is $0.84 (-24.3% Y/Y) and the consensus Income Estimate is $1.1B (+4.8% Y/Y).

The corporate lowered its fiscal yr earnings and income forecast on the shut of its second quarter, with the midpoint of its incomes outlook implying a 27% decline from a yr in the past.

Within the aftermath of the forecast downgrade, analysts raised issues over slowing progress and several other made downgrades. JMP Securities analyst Patrick Walravens warned total income outcomes are getting worse, and Citi analyst Tyler Radke mentioned the corporate seems to be “caught within the ready room”.

Argus analyst Joseph Bonner, in his downgrade, mentioned “the previous pandemic star has fallen to Earth” and has been “battered” by latest selloffs within the tech sector and broader market. Shares have fallen almost -56% YTD.

A latest SA contributor evaluation famous Zoom (ZM) nonetheless “enjoys enterprise demand tailwinds from the remote-in-person hybrid work type”, however demand stays gradual within the post-pandemic atmosphere.

Over the past 3 months, EPS estimates have seen 1 upward revision and 23 downward. Income estimates have seen 0 upward revisions and 21 downward.

Over the past 2 years, ZM has crushed EPS estimates 100% of the time and has crushed income estimates 75% of the time.