Zoom Video Communications, Inc. (ZM) released its third quarter earnings report on Monday, November 25. Despite the company reporting better-than-expected earnings for the quarter, shares fell over 5% following the release.

The videoconferencing technology company reported revenue of $1.18 billion for the quarter. This was up 3.6% from $1.14 billion during the same quarter last year and above analysts’ expectations of $1.16 billion.

“At Zoomtopia we announced major milestones such as AI Companion 2.0 and paid add-ons for AI Companion and industry-specific AI customization, further cementing our vision to deliver a differentiated AI-first work platform that empowers customers to achieve more than ever,” said Zoom CEO, Eric S. Yuan. “Additionally, Zoom Contact Center set a record with an over 20,000-seat deal in EMEA, and Workvivo secured its largest deal ever with a Fortune 10 company, showing our success in landing and expanding with global enterprises that recognize the promise of our integrated Workplace and Business Services platform.”

Zoom posted a net income of $207.05 million for the quarter or $0.66 per adjusted share. This was an improvement from a net income of $141.21 million or $0.45 per adjusted share during the same quarter last year.

Zoom’s Enterprise customers, those who subscribe directly through Zoom’s sales team or partners, reached approximately 192,400 for the third quarter. The number of customers spending more than $100,000 increased to 3,995, a 7.1% increase compared to the same quarter last year. At the end of the third quarter, the percentage of total online Monthly Recurring Revenue (MRR) from Online customers with a continuous service term of at least 16 months stood at 74.1%, an increase of 90 basis points year-over-year. Zoom expects revenue to be between $1.175 to $1.180 billion for the fourth quarter and $4.565 to $4.661 billion for full fiscal year 2025.

Zoom Video Communications, Inc. (ZM) shares ended on Wednesday, 11/27 $85.36, down 3% for the week.

Best Buy Releases Earnings Report

Best Buy Co., Inc. (BBY) posted its third quarter earnings on Tuesday, November 26. The company’s shares were down about 6% after reporting earnings that fell short of analysts’ expectations.

The company’s quarterly revenue came in at $9.45 billion, down from $9.76 billion during the same quarter last year. This was below analysts’ expected revenue of $9.63 billion.

“In the third quarter, our teams delivered an in-line non-GAAP operating income rate on sales that were a little softer than expected," said Best Buy CEO, Corie Barry. “During the second half of the quarter, a combination of the ongoing macro uncertainty, customers waiting for deals and sales events, and distraction during the run-up to the election, particularly in non-essential categories, led to softer-than-expected demand. In the first few weeks of Q4, as holiday sales have begun and the election is behind us, we have seen customer demand increase again.”

For the quarter, Best Buy reported net earnings of $273 million or $1.26 per adjusted share. This was up from $263 million or $1.21 per share reported last year at this time.

The electronics retailer’s sales fell year-over-year across domestic and international categories. In the Domestic segment, revenue fell by 3.3% and came in at $8.70 billion, a decline attributable to a decrease in domestic comparable sales of 2.8%. International revenue fell by 1.6% to $748 million stemming from a comparable sales decline of 3.7%. Best Buy adjusted its full-year guidance and expects revenue of $41.1 billion to $41.5 billion with a decline of 2.5% to 3.5% in comparable sales. The company announced it authorized payment of a regular quarterly cash dividend of $0.94 per common share payable on January 7, 2025, to shareholders of record on December 17, 2024.

Best Buy Co., Inc. (BBY) shares ended on Wednesday, 11/27 at $88.17, down 5% for the week.

DICK'S Sporting Goods Announces Earnings

DICK’S Sporting Goods, Inc. (DKS) announced its third quarter earnings on Tuesday, November 26. The Pittsburgh-based sporting goods chain’s shares rose by 6% after the report was released.

The retailer reported quarterly net sales of $3.06 billion. This was up from $3.04 billion at the same time last year and more than analysts' expectations of $3.03 billion.

“We are very proud of our Q3 results and our performance year-to-date,” said DICK’s Sporting Goods CEO, Lauren Hobart. “Our third quarter comp sales grew 4.2%, driven by a continued focus on our strategic pillars and great execution from our team. We had an excellent back-to-school season and continued to gain market share. As a result of our strong performance in the quarter and the continued confidence we have in our business, we are again raising our full year outlook. We believe our differentiated product, quality service and powerful omni-channel experience will resonate well with our athletes this holiday season.”

For the third quarter, DICK’S reported net income of $227.81 million or $2.75 per diluted share. This was up from $201.11 million or $2.39 per diluted share reported at this time last year.

The company’s comparable store sales increased 4.2% in the third quarter, compared to last year’s increase of 1.9%. DICK’s opened three new stores in the quarter for a total of 864 locations. The company raised its full-year guidance and now expects comparable store sales between 3.6% to 4.2% and earnings per diluted share between $13.65 to $13.95. The company announced that it authorized a quarterly dividend of $1.10 per share of common stock and Class B common stock payable on December 27, 2024, to shareholders of record on December 13, 2024.

DICK’S Sporting Goods Inc. (DKS) shares ended on Wednesday, 11/27 at $213.66, down 2% for the week.

The Dow started the week of 11/25 at 44,385 and closed at 44,722 on 11/27. The S&P 500 started the week at 5,992 and closed at 5,999. The NASDAQ started the week at 19,141 and closed at 19,060.

U.S. Treasury yields inched higher heading into the Thanksgiving holiday after the markets digested the latest Federal Reserve minutes. Yields fell back midweek as the latest employment numbers showed the U.S. labor market remains tight.

On Tuesday, the Federal Reserve released the minutes from its November meeting, indicating confidence that inflation is showing signs of easing. Federal Reserve officials unanimously agreed to reduce their key federal funds rate to 4.5% and 4.75% and stated that further interest rate cuts may come but at a more gradual pace.

“In discussing the outlook for monetary policy, participants anticipated that if the data came in about as expected, with inflation continuing to move down sustainably to 2% and the economy remaining near maximum employment, it would likely be appropriate to move gradually toward a more neutral stance of policy over time,” noted the minutes.

The benchmark 10-year Treasury note yield opened the week of November 25 at 4.41% and traded as low as 4.27% on Tuesday. The 30-year Treasury bond opened the week at 4.58% and traded as low as 4.45% on Tuesday.

On Wednesday, the U.S. Department of Labor reported that initial claims for unemployment decreased by 2,000 to 213,000 for the week ending November 23. This came below analysts’ expectations of 217,000 claims for the week. Continuing unemployment claims increased by 9,000, reaching 1.91 million.

“After being boosted by the Boeing strike and Hurricanes Helene and Milton in early October, initial claims have stabilized over the last several weeks at levels consistent with a limited pace of layoffs,” said Lead U.S. Economist at Oxford Economics, Nancy Vanden Houten.

The 10-year Treasury note yield ended on Wednesday 11/27 at 4.26%, while the 30-year Treasury note yield closed on Wednesday at 4.43%.

Freddie Mac released its latest Primary Mortgage Market Survey on Wednesday, November 27. The report showed a slight decrease in 30-year mortgage rates.

This week, the 30-year fixed rate mortgage averaged 6.81%, down from last week’s average 6.84%. Last year at this time, the 30-year fixed rate mortgage averaged 7.22%.

The 15-year fixed rate mortgage averaged 6.10% this week, up from 6.02% last week. At this time last year, the 15-year fixed rate mortgage averaged 6.56%.

“The 30-year fixed-rate mortgage moved down this week, but not by much,” said Freddie Mac’s Chief Economist, Sam Khater. “Rates have been relatively flat over the last few weeks as the market waits for more clarity on specific economic policies. Potential homebuyers are also waiting on the sidelines, causing demand to be lackluster. Despite the low sales activity, inventory has only modestly improved and remains dramatically undersupplied.”

Based on published national averages for the week of 11/18, the national savings rate was 0.43%. The one-year CD finished at 1.84%.

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