Zscaler (NASDAQ:ZS) Updates Q2 Earnings Guidance

Zscaler (NASDAQ:ZS) updated its second quarter earnings guidance on Monday. The company provided EPS guidance of $0.68-$0.69 for the period, compared to the consensus EPS estimate of $0.68. The company issued revenue guidance of $633-$635 million, compared to the consensus revenue estimate of $632.97 million. Zscaler also updated its FY25 guidance to $2.94-$2.99 EPS.

Zscaler Stock Up 0.9 %

NASDAQ ZS traded up $1.92 on Monday, reaching $208.51. The company had a trading volume of 4,831,689 shares, compared to its average volume of 2,010,920. The stock has a market capitalization of $31.99 billion, a PE ratio of -516.46 and a beta of 0.82. The firm’s 50 day moving average price is $190.12 and its 200 day moving average price is $184.80. Zscaler has a 12 month low of $153.45 and a 12 month high of $259.61.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Monday, December 2nd. The company reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.14. Zscaler had a negative net margin of 2.66% and a negative return on equity of 3.46%. The company had revenue of $628.00 million during the quarter, compared to analysts’ expectations of $605.51 million. During the same period in the previous year, the company earned ($0.18) EPS. The firm’s quarterly revenue was up 26.4% on a year-over-year basis. On average, research analysts expect that Zscaler will post -0.95 EPS for the current year.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on ZS. Rosenblatt Securities reissued a “neutral” rating and set a $190.00 price target on shares of Zscaler in a report on Wednesday, September 4th. Morgan Stanley increased their target price on shares of Zscaler from $202.00 to $215.00 and gave the stock an “equal weight” rating in a research note on Monday, August 26th. Cantor Fitzgerald raised shares of Zscaler to a “hold” rating in a research note on Monday, November 18th. Bank of America downgraded shares of Zscaler from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $265.00 to $195.00 in a research note on Wednesday, September 4th. Finally, Wells Fargo & Company cut their price objective on shares of Zscaler from $182.00 to $180.00 and set an “equal weight” rating on the stock in a report on Wednesday, September 4th. Ten investment analysts have rated the stock with a hold rating, twenty-one have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $221.13.

Insiders Place Their Bets

In other news, insider Robert Schlossman sold 1,435 shares of the stock in a transaction that occurred on Wednesday, October 9th. The stock was sold at an average price of $181.70, for a total transaction of $260,739.50. Following the completion of the transaction, the insider now directly owns 105,806 shares in the company, valued at approximately $19,224,950.20. This represents a 1.34 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Michael J. Rich sold 4,813 shares of the stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of $171.28, for a total value of $824,370.64. Following the transaction, the insider now owns 103,259 shares of the company’s stock, valued at approximately $17,686,201.52. This trade represents a 4.45 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 30,502 shares of company stock worth $5,256,651 in the last 90 days. 18.10% of the stock is owned by company insiders.

About Zscaler

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.