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

Zscaler (NASDAQ:ZS) released its earnings results on Monday. The company reported $0.77 EPS for the quarter, topping the consensus estimate of $0.63 by $0.14, RTT News reports. Zscaler had a negative return on equity of 3.46% and a negative net margin of 2.66%. The business had revenue of $628.00 million during the quarter, compared to analysts’ expectations of $605.51 million. During the same quarter last year, the firm posted ($0.18) earnings per share. The firm’s revenue 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

Zscaler 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. The stock has a 50-day moving average price of $190.12 and a two-hundred day moving average price of $184.80. Zscaler has a 52-week low of $153.45 and a 52-week high of $259.61. The company has a market cap of $31.99 billion, a P/E ratio of -516.46 and a beta of 0.82.

Insider Transactions at Zscaler

In other news, insider Michael J. Rich sold 4,813 shares of the company’s stock in a transaction dated 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 transaction, the insider now directly owns 103,259 shares in the company, valued at approximately $17,686,201.52. This represents a 4.45 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Robert Schlossman sold 4,947 shares of the business’s stock in a transaction dated Monday, September 30th. The shares were sold at an average price of $170.22, for a total value of $842,078.34. Following the completion of the sale, the insider now directly owns 107,241 shares of the company’s stock, valued at approximately $18,254,563.02. This trade represents a 4.41 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 30,502 shares of company stock worth $5,256,651. 18.10% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on ZS shares. Stifel Nicolaus raised their price objective on Zscaler from $220.00 to $235.00 and gave the company a “buy” rating in a research note on Thursday, November 14th. Oppenheimer cut their target price on Zscaler from $260.00 to $230.00 and set an “outperform” rating on the stock in a research report on Wednesday, September 4th. Bank of America cut Zscaler from a “buy” rating to a “neutral” rating and cut their target price for the company from $265.00 to $195.00 in a research report on Wednesday, September 4th. Loop Capital cut their target price on Zscaler from $180.00 to $165.00 and set a “hold” rating on the stock in a research report on Wednesday, September 4th. Finally, Cantor Fitzgerald raised Zscaler to a “hold” rating in a research report on Monday, November 18th. 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 data from MarketBeat, the company presently 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.