Cloud security platform Zscaler (NASDAQ: ZS) will be reporting earnings this Thursday afternoon. Here’s what investors should know.
Zscaler beat analysts’ revenue expectations last quarter, reporting revenues of $850.5 million, up 25.4% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.
Is Zscaler a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Zscaler’s revenue to grow 22% year on year, in line with the 21.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Zscaler has a history of exceeding Wall Street’s expectations.
Looking at Zscaler’s peers in the cybersecurity segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Palo Alto Networks delivered year-on-year revenue growth of 34.4%, beating analysts’ expectations by 1.7%, and Qualys reported revenues up 11%, topping estimates by 2%. Qualys traded up 13.8% following the results.
Read our full analysis of Palo Alto Networks’s results here and Qualys’s results here.
There has been positive sentiment among investors in the cybersecurity segment, with share prices up 11.1% on average over the last month. Zscaler is up 15% during the same time and is heading into earnings with an average analyst price target of $198.88 (compared to the current share price of $177.58).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
