US Markets
U.S. stocks traded in the green on Wednesday morning, as did gold and oil prices. The Dow Jones Industrial Average gained 0.24% to 34,657, the S&P 500 Index jumped 0.24% to 4,212 and the Nasdaq Composite Index was up 0.20% at 13,764.
Gainers
• DXC Technology Co (DXC, Financial) +3.8%
• Schlumberger NV (SLB, Financial) +3.6%
• HollyFrontier Corp (HFC, Financial) +3.3%
• Mastercard Inc (MA, Financial) +2.9%
• Devon Energy Corp (DVN, Financial) +2.9%
• Halliburton Co (HAL, Financial) +2.8%
Losers
• Tapestry Inc (TPR, Financial) -3.8%
• L Brands Inc (LB, Financial) -3.6%
• PVH Corp (PVH, Financial) -3.2%
• Nucor Corp (NUE, Financial) -2.8%
• Gap Inc (GPS, Financial) -2.1%
• Freeport-McMoRan Inc (FCX, Financial) -1.5%
Global Markets
The main European stock markets traded mainly in the green. The U.K.'s FTSE 100 gained 0.16%, Germany's Dax jumped 0.15%, France's CAC 40 was up 0.32% and Spain's Ibex 35 lost 0.32%.
In Asia, Japan's Nikkei 225 gained 0.46%, India's BSE Sensex dipped 0.16%, Hong Kong's Hang Seng slid 0.58% and China's Shanghai Composite was down 0.76%.
Zoom releases earnings report
Shares of Zoom Video Communications, Inc. (ZM, Financial) traded in the red, down 1% on Wednesday morning to $324.01 after the company posted its fiscal first-quarter 2022 results.
The company's revenue grew 191.4% year over year to $956.24 million, beating expectations by $48.07 million. The company posted earnings of $1.32 per share, beating estimates by 34 cents.
Founder and CEO Eric S. Yuan had the following to say:
"We kicked off the fiscal year with a very strong first quarter, posting 191% total year-over-year revenue growth combined with strong profitability and cash flow. Our steadfast commitment to empowering customers to work and learn from anywhere with our expansive, innovative, and frictionless video communications platform continued to drive our results. With this solid start, we are pleased to raise our total guidance range to $3.975 billion to $3.990 billion for the full fiscal year."
The GAAP income from operations was $226.3 million, up from $23.4 million in the first quarter of fiscal year 2021. Non-GAAP income from operations was $400.9 million, up from $54.6 million in the first quarter of fiscal year 2021. The GAAP operating margin was 23.7% and non-GAAP operating margin was 41.9%.
The net cash provided by operating activities reached $533.3 million, compared to $259.0 million in the comparable period of fiscal year 2021. Free cash flow was $454.2 million, compared to $251.7 million.
Looking ahead to full fiscal 2022, the company expects revenue to be between $3.975 billion and $3.990 billion. It also projects Non-GAAP diluted earnings per share in the range of $4.56 to $4.61.
The company's shares have retreated 9.4% since the beginning of the year versus the S&P 500's gain of 14.1%.
Joel Greenblatt (Trades, Portfolio) boosted his investment in the stock by 370% to 14,177 shares. Ken Fisher (Trades, Portfolio) added 31% to his stake for a total of 967 shares, while David Swensen (Trades, Portfolio) sold out of the stock. Mario Gabelli (Trades, Portfolio) opened a new position in Zoom with 2,596 shares.
Disclosure: The author holds no positions in any stocks mentioned.
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
