ZoomInfo Technologies, Inc. ZI shares are trading higher Tuesday after the company posted better-than-expected fourth-quarter financial results after the bell on Monday.
Breaking Down the Results:
ZoomInfo reported quarterly earnings of 26 cents per share, exceeding the analyst consensus estimate of 25 cents by 4% and matching the figure from the same period last year.
The company posted quarterly sales of $316.4 million, surpassing the analyst consensus estimate of $310.64 million by 1.85% and marking a 4.87% increase over sales of $301.7 million year-over-year.
ZoomInfo also provided first-quarter revenue guidance of between $307 million and $310 million, compared to the $308.73 million estimate, with earnings per share projected to be between 23 cents and 24 cents. The company anticipates fiscal year 2024 revenue to range from $1.26 billion to $1.28 billion, versus the $1.27 billion estimate, with earnings of between 99 cents and $1.01 per share.
Following the earnings release, Piper Sandler analyst Brent Bracelin reaffirmed his Overweight rating on ZoomInfo Technologies and raised the price target from $23 to $24.
Additionally, Needham analyst Joshua Reilly reiterated a Buy rating for ZoomInfo Technologies and maintained a $25 price target.
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ZoomInfo’s 2024 Stock Prediction
ZoomInfo Technologies’ revenue growth in FY23 stood at 12.88%, influenced by various factors including the macroeconomic environment, product and service demand, and competitive positioning. This growth is a crucial indicator for investors evaluating the company’s future prospects.
Some macro factors that may impact the company’s performance in the coming year include higher interest rates, progress on reining in inflation, and labor market strength. The Fed’s benchmark rate currently sits at 5.33%, while PPI recently registered at -0.1%, up 2.0% from last year. The unemployment rate was most recently reported at 3.7%.
Investors should monitor economic conditions to determine whether the macro environment is favorable or detrimental to ZoomInfo Technologies stock. For real-time economic data and breaking market updates, check out Benzinga Pro. Try it for free.
How does this compare to ZoomInfo Technologies’ peers?
Investors may also want to assess a stock in relation to companies with similar products or in related industries. ZoomInfo Technologies operates in the Communication Services sector. The stock has experienced average annual growth of -31.84% compared to the -18.73% average of its peer companies, falling below the broader sector movement of ZoomInfo Technologies.
ZI Price Action: According to Benzinga Pro, ZoomInfo shares are up nearly 10% at $17.61 at the time of publication.
Image: Courtesy of ZoomInfo Technologies, Inc.
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