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Zoom (NASDAQ:ZM) stock is sliding lower on Tuesday following the release of its earnings report for the third quarter of fiscal 2023.
That bad news dragging ZM stock down today has to do with its latest guidance. The company expects revenue for its fourth quarter to range from $1.095 billion to $1.105 billion, which would miss Wall Street’s estimate of $1.12 billion.
To go along with that, Zoom is looking for adjusted earnings per share between 75 cents and 78 cents in Q4. Yet again, that would have it missing analysts’ EPS estimate of 81 cents for the period.
Fiscal 2023 Guidance Is Also Grim
For the full year of fiscal 2023, Zoom is expecting revenue to come in between $4.370 billion and $4.380 billion. That’s not a good look for the company compared to Wall Street’s revenue estimate of $4.4 billion for the fiscal year.
On the flip side of that is the video communication platform’s expected adjusted EPS of $3.91 to $3.94 for fiscal 2023. That’s a bright spot today compared to analysts’ adjusted EPS estimate of $3.70 for the year.
Q3 results were mixed compared to Wall Street’s estimates. That includes adjusted EPS of $1.07 alongside revenue of $1.1 billion. Analysts were predicting adjusted EPS and revenue of 84 cents and $1.1 billion.
Today’s news has ZM stock seeing heavy trading as investors sell shares. This has more than 5 million units on the move as of this writing. The company’s daily average trading volume is about 4.4 million shares.
ZM stock is down 7.9% as of Tuesday morning.
Investors can find more of the latest stock market news below!
InvestorPlace is home to all of the most recent stock stories for Tuesday! That includes what has shares of Best Buy (NYSE:BBY) and GameStop (NYSE:GME) stock in the news, as well as this morning’s biggest pre-market stock movers. You can catch up on all of that news at the following links!
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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.