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As you might know, ZoomInfo Technologies Inc. (NASDAQ:GTM) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$306m, some 3.4% above estimates, and statutory earnings per share (EPS) coming in at US$0.08, 25% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following last week's earnings report, ZoomInfo Technologies' 23 analysts are forecasting 2025 revenues to be US$1.20b, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 193% to US$0.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.19b and earnings per share (EPS) of US$0.38 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Check out our latest analysis for ZoomInfo Technologies
Despite cutting their earnings forecasts,the analysts have lifted their price target 5.4% to US$11.21, suggesting that these impacts are not expected to weigh on the stock's value in the long term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic ZoomInfo Technologies analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$6.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 1.1% annualised decline to the end of 2025. That is a notable change from historical growth of 23% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. It's pretty clear that ZoomInfo Technologies' revenues are expected to perform substantially worse than the wider industry.