Zscaler (NASDAQ:ZS) Updates Q1 2020 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its first quarter 2020 earnings guidance on Tuesday morning. The company provided earnings per share guidance of $0.00-0.01 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $0.02. The company issued revenue guidance of $89-90 million, compared to the consensus revenue estimate of $87.57 million.Zscaler also updated its FY 2020 guidance to $0.12-0.15 EPS.

A number of analysts have recently weighed in on the stock. BMO Capital Markets cut their price objective on shares of Zscaler from $100.00 to $60.00 and set a market perform rating on the stock in a research note on Wednesday. They noted that the move was a valuation call. Berenberg Bank assumed coverage on shares of Zscaler in a research note on Friday, May 31st. They issued a hold rating and a $78.00 price objective on the stock. Needham & Company LLC reiterated a strong-buy rating and issued a $89.00 price objective (up previously from $65.00) on shares of Zscaler in a research note on Friday, May 31st. ValuEngine lowered shares of Zscaler from a buy rating to a hold rating in a research note on Thursday, August 1st. Finally, Cowen cut their price objective on shares of Zscaler from $85.00 to $70.00 and set an outperform rating on the stock in a research note on Wednesday. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company. The company presently has an average rating of Hold and an average target price of $67.50.

ZS stock opened at $49.59 on Friday. The firm has a market cap of $7.74 billion, a PE ratio of -413.25 and a beta of 1.29. The firm’s fifty day moving average is $76.08 and its 200 day moving average is $72.13. Zscaler has a one year low of $30.72 and a one year high of $89.54.

Zscaler (NASDAQ:ZS) last released its quarterly earnings results on Tuesday, September 10th. The company reported ($0.02) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.08) by $0.06. The company had revenue of $86.11 million for the quarter, compared to analyst estimates of $82.15 million. Zscaler had a negative net margin of 9.46% and a negative return on equity of 9.78%. Research analysts predict that Zscaler will post -0.24 EPS for the current year.

In related news, Director Karen Blasing sold 1,000 shares of the firm’s stock in a transaction dated Monday, June 17th. The shares were sold at an average price of $77.12, for a total transaction of $77,120.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Robert Schlossman sold 1,213 shares of the firm’s stock in a transaction dated Tuesday, June 18th. The stock was sold at an average price of $77.80, for a total transaction of $94,371.40. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 189,774 shares of company stock worth $15,730,959. Insiders own 27.40% of the company’s stock.

About Zscaler

Zscaler, Inc operates as a cloud security company worldwide. The company's flagship services include Zscaler Internet Access solution that connect users to externally managed applications, including software-as-a-service applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to internally managed applications, either hosted internally in data centers, and private or public clouds.

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