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Zoom (NASDAQ:ZM) stock is taking a beating on Tuesday after the video communications company released results for the second quarter of fiscal 2023.
That bad news for ZMs tock comes from its revenue of $1.1 billion. That misses Wall Street’s estimate of $1.12 billion. Even if it is an 8% increase compared to the $1.02 billion reported in the same period of the year prior.
That’s a shame as the company’s adjusted earnings per share of $1.05 beat analysts’ estimate of 93 cents per share. That’s despite its adjusted EPS decreasing 23% from the $1.36 in the second quarter of fiscal 2022.
Not helping ZM stock is its outlook for Q3 of fiscal 2023. This has it expecting revenue to range from $1.09 billion to $1.1 billion. That doesn’t look good next to Wall Street’s estimate of $1.15 billion for the quarter.
To go along with that, Zoom’s revenue outlook for the fiscal full year of 2023 is between $4.385 billion and $4.395 billion. Yet again, this won’t have it reaching analysts’ revenue estimate of $4.54 billion for the year.
Headwinds Held ZM Stock Back
Kelly Steckelberg, CFO of Zoom, said the following in the company’s earnings report.
“The headwinds we saw mainly relate to the strengthening dollar, new Online subscriptions, and to a lesser extent bookings linearity. We have implemented initiatives focused on driving new Online subscriptions, which have shown early promise but were not enough to overcome the macro dynamics in the quarter.”
The poor earnings report brings with it heavy trading of ZM stock. That has more than 7 million shares moving as of this morning. For comparison, the company’s daily average trading volume is about 5 million shares.
ZM stock is down 11.3% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.