Zscaler (NASDAQ:ZS) will report earnings tomorrow, following a strong last quarter where it surpassed revenue expectations by 2.1%, reaching $647.9 million, a 23.4% year-on-year increase. Analysts anticipate a 20.6% growth for this quarter, projecting revenue of $667 million and adjusted earnings of $0.76 per share. Despite missing revenue estimates twice in the past two years, recent evaluations from analysts suggest confidence in Zscaler’s performance. The cybersecurity sector remains optimistic, with Zscaler’s stock up 14.5% in the last month. Current share prices are at $256.20, against an average analyst target of $245.50.
Zscaler (NASDAQ:ZS), a cloud security platform, is set to release its earnings report tomorrow after the market closes. Here’s what to anticipate.
Last quarter, Zscaler exceeded analysts’ revenue projections by 2.1%, reporting $647.9 million in revenue, reflecting a 23.4% year-over-year increase. The quarter proved robust for the company, significantly surpassing expectations for both annual recurring revenue and EBITDA.
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For this quarter, analysts project Zscaler’s revenue to rise 20.6% year over year to $667 million, a slowdown from the 32.1% growth seen in the same quarter last year. Adjusted earnings are estimated to be $0.76 per share.
In the past 30 days, analysts following Zscaler have reaffirmed their estimates, indicating they expect the company to maintain its trajectory as earnings approach. Notably, Zscaler has missed revenue expectations set by Wall Street on two occasions over the last two years.
Examining Zscaler’s competitors in the cybersecurity sector, some have already announced their Q1 results, providing insight into potential outcomes. Palo Alto Networks reported a 15.3% year-over-year revenue increase, exceeding analyst expectations by 0.5%, while Qualys showed a 9.7% revenue growth, beating estimates by 1.8%. Following their results, Palo Alto Networks’ stock dropped by 6.9%, while Qualys remained steady.
For a detailed analysis of Palo Alto Networks’ and Qualys’ results, click here.
Investor sentiment in the cybersecurity space has been positive, with average share prices rising 8.5% over the past month. Zscaler has increased by 14.5% during the same timeframe and approaches earnings with an average analyst target price of $245.50, compared to its current price of $256.20.
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