Zscaler (NASDAQ:ZS) Releases Q2 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its second quarter earnings guidance on Monday morning. The company provided EPS guidance of $0.68-$0.69 for the period, compared to the consensus EPS estimate of $0.68. The company issued revenue guidance of $633-$635 million, compared to the consensus revenue estimate of $632.97 million. Zscaler also updated its FY 2025 guidance to 2.940-2.990 EPS.

Zscaler Stock Performance

ZS stock opened at $208.51 on Tuesday. The stock’s 50 day moving average is $190.12 and its two-hundred day moving average is $184.80. Zscaler has a 52-week low of $153.45 and a 52-week high of $259.61.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Monday, December 2nd. The company reported $0.77 EPS for the quarter, beating the consensus estimate of $0.63 by $0.14. 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 analyst estimates of $605.51 million. During the same period in the previous year, the business posted ($0.18) EPS. The company’s quarterly revenue was up 26.4% on a year-over-year basis. As a group, equities research analysts predict that Zscaler will post -0.95 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on ZS. Robert W. Baird lowered their target price on Zscaler from $260.00 to $225.00 and set an “outperform” rating on the stock in a report on Wednesday, September 4th. Bank of America cut Zscaler from a “buy” rating to a “neutral” rating and decreased their target price for the stock from $265.00 to $195.00 in a research report on Wednesday, September 4th. Susquehanna restated a “positive” rating and set a $210.00 price target on shares of Zscaler in a report on Thursday, September 5th. BMO Capital Markets reduced their price target on Zscaler from $208.00 to $197.00 and set an “outperform” rating for the company in a report on Wednesday, September 4th. Finally, BNP Paribas initiated coverage on Zscaler in a research note on Tuesday, October 8th. They issued a “neutral” rating and a $180.00 price objective on the stock. Ten analysts have rated the stock with a hold rating, twenty-one have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Zscaler currently has a consensus rating of “Moderate Buy” and a consensus target price of $221.13.

Insider Activity at Zscaler

In other news, insider Michael J. Rich sold 4,813 shares of the firm’s stock in a transaction dated Tuesday, September 17th. The shares were sold at an average price of $171.28, for a total value of $824,370.64. Following the sale, the insider now directly owns 103,259 shares in the company, valued at approximately $17,686,201.52. This trade represents a 4.45 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 2,852 shares of the stock in a transaction dated 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 of the company’s stock, valued at approximately $61,906,072.96. This trade represents a 0.78 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 30,502 shares of company stock worth $5,256,651 over the last quarter. Company insiders own 18.10% of the company’s stock.

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.