Zscaler (NASDAQ:ZS) Issues Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Zscaler (NASDAQ:ZS) posted its quarterly earnings results on Monday. The company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.63 by $0.14, RTT News reports. The firm had revenue of $628.00 million during the quarter, compared to the consensus estimate of $605.51 million. Zscaler had a negative net margin of 2.66% and a negative return on equity of 3.46%. The company’s revenue was up 26.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.18) earnings per share. Zscaler updated its Q2 guidance to $0.68-$0.69 EPS and its FY25 guidance to $2.94-$2.99 EPS.

Zscaler Trading Up 0.9 %

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

Insider Activity at Zscaler

In related news, CEO Jagtar Singh Chaudhry sold 2,852 shares of the business’s 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 $488,490.56. Following the sale, the chief executive officer now directly owns 361,432 shares in the company, valued at $61,906,072.96. The trade was a 0.78 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Robert Schlossman sold 1,435 shares of the company’s stock in a transaction on Wednesday, October 9th. The shares were sold at an average price of $181.70, for a total value of $260,739.50. Following the sale, the insider now directly owns 105,806 shares of the company’s stock, valued at approximately $19,224,950.20. This represents a 1.34 % 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 valued at $5,256,651 over the last three months. 18.10% of the stock is owned by insiders.

Analysts Set New Price Targets

ZS has been the topic of a number of research reports. BTIG Research raised their target price on shares of Zscaler from $205.00 to $238.00 and gave the company a “buy” rating in a research report on Wednesday, November 27th. Wedbush dropped their price objective on shares of Zscaler from $260.00 to $220.00 and set an “outperform” rating on the stock in a report on Wednesday, September 4th. Royal Bank of Canada restated an “outperform” rating and issued a $230.00 target price on shares of Zscaler in a research note on Wednesday, September 4th. Scotiabank dropped their price target on Zscaler from $210.00 to $195.00 and set a “sector outperform” rating on the stock in a research note on Wednesday, September 4th. Finally, BNP Paribas began coverage on Zscaler in a research note on Tuesday, October 8th. They issued a “neutral” rating and a $180.00 price objective for the company. Ten equities research analysts have rated the stock with a hold rating, twenty-one have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $221.13.

Zscaler Company Profile

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.