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

Zscaler (NASDAQ:ZS) issued its quarterly earnings data on Monday. The company reported $0.77 earnings per share for the quarter, topping analysts’ consensus estimates of $0.63 by $0.14, RTT News reports. Zscaler had a negative net margin of 2.66% and a negative return on equity of 3.46%. The business 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) earnings per share. Zscaler’s revenue for the quarter was up 26.4% on a year-over-year basis. Zscaler updated its Q2 guidance to $0.68-$0.69 EPS and its FY25 guidance to $2.94-$2.99 EPS.

Zscaler Stock Performance

Shares of Zscaler stock traded up $1.92 on Monday, reaching $208.51. 4,831,689 shares of the stock were exchanged, compared to its average volume of 2,010,920. The firm has a market cap of $31.99 billion, a PE ratio of -516.46 and a beta of 0.82. The firm’s 50 day moving average is $190.12 and its 200-day moving average is $184.80. Zscaler has a one year low of $153.45 and a one year high of $259.61.

Analysts Set New Price Targets

A number of analysts have commented on ZS shares. Jefferies Financial Group raised their price objective on Zscaler from $225.00 to $245.00 and gave the stock a “buy” rating in a research report on Tuesday, November 26th. Needham & Company LLC dropped their price objective on shares of Zscaler from $290.00 to $235.00 and set a “strong-buy” rating for the company in a research report on Wednesday, September 4th. Loop Capital decreased their price objective on Zscaler from $180.00 to $165.00 and set a “hold” rating on the stock in a research report on Wednesday, September 4th. BNP Paribas began coverage on shares of Zscaler in a research note on Tuesday, October 8th. They set a “neutral” rating and a $180.00 price target for the company. Finally, Barclays upped their price target on Zscaler from $200.00 to $220.00 and gave the company an “overweight” rating in a research note on Thursday, November 21st. Ten research analysts have rated the stock with a hold rating, twenty-one have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, Zscaler has an average rating of “Moderate Buy” and a consensus price target of $221.13.

Insider Activity at Zscaler

In related news, insider Robert Schlossman sold 1,435 shares of Zscaler stock in a transaction that occurred on Wednesday, October 9th. The stock was sold at an average price of $181.70, for a total value of $260,739.50. Following the transaction, the insider now directly owns 105,806 shares of the company’s stock, valued at $19,224,950.20. The trade was a 1.34 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 2,852 shares of the company’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 completion of the sale, the chief executive officer now owns 361,432 shares in the company, valued at $61,906,072.96. The trade was a 0.78 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 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.

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.