Why ZoomInfo Stock Is Zooming After Earnings

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.

The Details:

ZoomInfo reported quarterly earnings of 26 cents per share which beat the analyst consensus estimate of 25 cents by 4% and is unchanged from the same period last year.

The company reported quarterly sales of $316.4 million, beating the analyst consensus estimate of $310.64 million by 1.85% and representing a 4.87% increase over sales of $301.7 million year-over-year.

ZoomInfo also issued first-quarter guidance for revenue of between $307 million and $310 million, versus the $308.73 million estimate, and earnings per share between 23 cents and 24 cents.  The company sees fiscal year 2024 revenue of between $1.26 billion and $1.28 billion, versus the $1.27 billion estimate, and earnings of between 99 cents and $1.01 per share.

Following the earnings release, Piper Sandler analyst Brent Bracelin maintained ZoomInfo Technologies with an Overweight and raised the price target from $23 to $24.

Additionally, Needham analyst Joshua Reilly reiterated ZoomInfo Technologies with a Buy and maintained a $25 price target.

Related News: What’s Going On With Bitcoin Miners Marathon Digital and Riot Platforms Stock?

ZI Stock Prediction 2024

ZoomInfo Technologies’ revenue growth in FY23 was 12.88%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at -0.1%, growing 2.0% from last year. The unemployment rate was most recently reported as 3.7%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for ZoomInfo Technologies stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against ZoomInfo Technologies' peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar 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. This is 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.