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Zoom Stock Pops As Guidance Tops Expectations Amid Coronavirus Recovery - Investor's Business Daily

Zoom Video Communications (ZM) reported fourth-quarter earnings and revenue for fiscal 2021 late Monday that handily beat analyst estimates. Zoom stock popped in extended trading as full-year fiscal 2022 guidance also came in above expectations.

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San Jose, Calif.-based Zoom forecast fiscal 2022 revenue of $3.77 billion. Analysts had estimated revenue growth of 36.5% to $3.53 billion. Zoom Video said it expects adjusted earnings of $3.62 a share at the midpoint of its guidance versus analyst estimates of $2.96.

San Jose, Calif.-based Zoom said January-quarter earnings jumped 713% to $1.22 per share on an adjusted basis from a year earlier. Revenue soared 369% to $882.5 million, the company said.

Analysts projected Zoom earnings of 79 cents a share on sales of $811.8 million for the period ended Jan. 31. The company said it had 467,100 business customers, each with more than 10 employees, as Jan. 31. That's up from 433,700 in the October quarter.

The "work-from-home" stock retreated heading into earnings amid positive vaccine news and a lofty valuation. But shares in Zoom Video jumped 7.9% to near 442 in after-hours trading on the stock market today. In Monday's regular session, Zoom stock popped 9.7% amid a broad market rally.

Zoom Stock: Fiscal 2022 Guidance Tops Expectations

For the current quarter ending in April, Zoom forecast revenue of $902.5 million vs. analyst estimates of $830 million. Zoom said it expects adjusted profit of 96 cents at the midpoint of its guidance vs. estimates of 72 cents.

Zoom's cloud-based software sets up audio and videoconferencing, with chat tools also available. Customers also can easily share content.

Zoom stock soared in 2020 as consumer and business usage surged amid the coronavirus crisis and stay-at-home directives. But Zoom stock will contend with tough year-over-year comparisons as more employees return to office work.

Shares Down From All-Time High

Zoom stock has retreated from an all-time intraday high of 588.84 on Oct. 19.

Heading into its earnings report, ZM stock owned Relative Strength Rating of 87 out of a possible 99. Zoom stock has yet to form a new base providing an entry point.

Zoom holds nearly $4 billion in cash on its balance sheet. There's speculation it could make a big acquisition, most likely in the business communications market.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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