Stock Track | Zoom Plunges 5.01% Post-Market on Earnings Miss and Weak Profit Outlook

Stock Track
Feb 26

Zoom Communications Inc. (ZM) experienced a significant 5.01% decline in post-market trading following the release of its fourth-quarter financial results.

The video conferencing company reported adjusted earnings per share of $1.44 for the quarter, missing analyst estimates of $1.49. While revenue of $1.25 billion exceeded expectations, investors focused on the profit shortfall and the company's outlook for the current quarter, which fell below Wall Street projections.

Zoom faces intense competition from rivals such as Microsoft Teams and Google Meet, and is grappling with slowing growth as pandemic-era work-from-home arrangements decline. The company's forecast for first-quarter adjusted earnings between $1.40 and $1.42 per share also disappointed investors, coming in below the $1.45 estimate.

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