Zoom Video Communications (ZM) late Monday beat expectations for its fiscal third quarter, but offered mixed guidance for the current period. Still, ZM stock rose in extended trading.
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The San Jose, Calif.-based company earned an adjusted $1.29 a share on sales of $1.14 billion in the quarter ended Oct. 31. Analysts polled by FactSet had expected Zoom earnings of $1.09 a share on sales of $1.12 billion. On a year-over-year basis, Zoom earnings rose 21% while sales increased 3%.
ZM stock climbed 2.5% to 67.62 in after-hours trading on the stock market today. During the regular session Monday, ZM stock rose 2.9% to close at 66.
Earnings report details to follow.
ZM Stock Has Flatlined
Lately Zoom has been adding more productivity and artificial intelligence tools to its business communications platform.
On Sept. 5, it introduced Zoom AI Companion, a generative AI digital assistant. As of Oct. 30, the tool had generated more than 1 million meeting summaries.
Next year, Zoom plans to release Zoom Docs, an AI-powered workspace that can be used for documentation, project tracking and management tasks.
Zoom competes with Microsoft‘s (MSFT) Teams application as well as products from Alphabet‘s (GOOGL) Google, Cisco Systems (CSCO) and RingCentral (RNG).
ZM stock has flatlined this year amid sluggish sales growth. However, it has been in a consolidation pattern for the past 10 weeks with a buy point of 75.91, according to IBD MarketSmith charts.
Zoom shares hit a record high of 588.84 in October 2020 during the Covid pandemic. The video conferencing specialist saw usage surge during the work-from-home and school-at-home boom spurred by the health crisis.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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