Zoom’s share price set a new all-time high yesterday as traders snapped up the stock in advance of the first-quarter numbers being posted.
The figures were released after the close of trading in the US, and were well ahead of market expectations. EPS was 20 cents, which smashed the 9 cents forecast. Revenue in the three-month period jumped by almost 170% on an annual basis to $328.2 million, well ahead of the consensus estimate was just over $202 million.
Zoom share price climbs after impressive Q1
The impressive first-quarter figures set the scene for the full-year outlook. The group’s new guidance is for EPS of between $1.21 and $1.29, which represents a huge increase on the previous forecast of between 42 cents and 45 cents. The revenue outlook was raised too. The firm is now predicting revenue of between $1.78 billion and $1.8 billion, while the previous outlook was $905 to $915 million. Zoom’s share price gained ground in post-market trading last night, so dealers are clearly bullish on the company.
The pandemic has put Zoom in focus and the brand has become extremely well known, both in a professional and a personal capacity. The global lockdowns have prompted people to work and even socialise from home, and that is how the company’s popularity has managed to take off recently.
Is Zoom's share price set for a pullback?
At some stage, the lockdown restrictions will be loosened to a point where workers will return to their offices and people will have more freedom in terms of meeting others, so the group might see a dip in demand, but it's built up a great reputation in terms of branding. And, looking further down the line, there will probably be a greater focus on working from home, so Zoom’s services are likely to see an increase in demand in the years ahead.
The Zoom share price has enjoyed an extremely bullish run recently, and, as we know markets don't move in straight lines, the stock might incur a pullback in the short-to-medium term.
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