Zscaler (NASDAQ:ZS) Issues Q2 Earnings Guidance

Zscaler (NASDAQ:ZS) updated its second quarter earnings guidance on Monday. The company provided earnings per share guidance of $0.68-$0.69 for the period, compared to the consensus earnings per share 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 FY 2025 guidance to 2.940-2.990 EPS.

Zscaler Price Performance

NASDAQ ZS opened at $198.64 on Wednesday. The stock’s 50 day simple moving average is $190.79 and its 200 day simple moving average is $185.01. Zscaler has a one year low of $153.45 and a one year high of $259.61. The firm has a market cap of $30.48 billion, a PE ratio of -794.56 and a beta of 0.82.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Monday, December 2nd. The company reported $0.77 EPS for the quarter, topping analysts’ consensus estimates of $0.63 by $0.14. Zscaler had a negative net margin of 1.58% and a negative return on equity of 0.80%. The firm had revenue of $628.00 million for the quarter, compared to analyst estimates of $605.51 million. During the same quarter in the prior year, the firm earned ($0.18) EPS. The company’s revenue was up 26.4% on a year-over-year basis. As a group, equities analysts expect that Zscaler will post -0.95 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on ZS shares. Bank of America downgraded Zscaler from a “buy” rating to a “neutral” rating and cut their price target for the company from $265.00 to $195.00 in a research note on Wednesday, September 4th. JMP Securities reissued a “market outperform” rating and issued a $240.00 target price (down previously from $270.00) on shares of Zscaler in a research note on Tuesday. Canaccord Genuity Group boosted their target price on Zscaler from $220.00 to $230.00 and gave the stock a “buy” rating in a research report on Tuesday. BMO Capital Markets increased their price target on shares of Zscaler from $197.00 to $222.00 and gave the company an “outperform” rating in a research report on Tuesday. Finally, Wedbush decreased their price objective on shares of Zscaler from $260.00 to $220.00 and set an “outperform” rating for the company in a report on Wednesday, September 4th. Eleven research analysts have rated the stock with a hold rating and twenty-three have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Zscaler has an average rating of “Moderate Buy” and a consensus price target of $224.38.

Insider Activity at Zscaler

In related news, insider Michael J. Rich sold 4,813 shares of the business’s stock in a transaction on Tuesday, September 17th. The stock was sold at an average price of $171.28, for a total value of $824,370.64. Following the completion of the sale, the insider now directly owns 103,259 shares in the company, valued at $17,686,201.52. The trade was a 4.45 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Robert Schlossman sold 4,947 shares of the stock in a transaction on Monday, September 30th. The stock was sold at an average price of $170.22, for a total value of $842,078.34. Following the transaction, the insider now owns 107,241 shares in the company, valued at $18,254,563.02. The trade was a 4.41 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 30,502 shares of company stock worth $5,256,651. Company insiders own 18.10% of the company’s stock.

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.