Zoom Video Communications, Inc. (NASDAQ:ZM) Quarterly Earnings Preview

• Analysts predict an EPS of $1.31 and revenue of $1.16 billion for the upcoming earnings release.
• Despite a recent pullback, Zoom's stock has risen by 9% since the start of the year, showing resilience.
• Options markets anticipate a 10.9% swing in stock price post-earnings, with a bullish sentiment indicated by the 50-day call/put volume ratio of 6.00.

Zoom Video Communications, Inc. (NASDAQ:ZM) is gearing up to unveil its quarterly earnings on November 25, 2024. Market analysts are setting their expectations for an earnings per share (EPS) of $1.31 and revenue figures reaching $1.16 billion. This forecast comes at a time when the company's shares have seen a downturn, marking five consecutive days of losses after peaking at a two-year high of $87.15 on November 13.

Despite this recent setback, Zoom's stock has demonstrated resilience, with a modest uptick of 0.9% to $78.42. From the beginning of the year, the stock has appreciated by 9%, signaling a positive trajectory. Following its earnings report in August, which resulted in a 13% surge, the stock has occasionally experienced post-earnings growth, a trend not commonly seen in the last eight quarters.

The options market is bracing for a significant 10.9% fluctuation in Zoom's stock price post-earnings announcement. The direction of this expected swing remains a topic of speculation, but the prevailing sentiment among options traders is bullish. This is underscored by the stock's 50-day call/put volume ratio of 6.00, indicating a higher trading volume of call options over put options.

Zoom's financial health is reflected through its key financial metrics. The company boasts a price-to-earnings (P/E) ratio of approximately 28.68 and a price-to-sales ratio of about 5.45. These figures offer insights into how the market values Zoom's earnings and revenue, respectively. Furthermore, Zoom's enterprise value to sales ratio stands at around 5.13, with its enterprise value to operating cash flow ratio at approximately 12.50.

The company maintains a robust liquidity position, evidenced by a current ratio of approximately 4.56. This suggests that Zoom is well-equipped to meet its short-term liabilities. Additionally, the earnings yield for Zoom is calculated to be about 3.49%, which represents the return on investment for shareholders. These financial metrics underscore Zoom's strong financial standing as it approaches its earnings release.