Investors Eye Zscaler’s Q2 Results After Rival Crowdstrike’s Mixed Print: Retail Stays Bullish
Synopsis
The guidance issued in early December calls for $0.68 to $0.69 in EPS on revenue of $633 million to $635 million.
Zscaler, Inc. (ZS) stock remained volatile on Wednesday as the cybersecurity vendor prepares to release its quarterly results after the closing bell.
According to the Finchat-compiled consensus estimates, the San Jose, California-based company is expected to report adjusted earnings per share (EPS) of $0.69 and revenue of $635.35 million for the second quarter of the fiscal year 2025.
This compares to the year-ago EPS of $0.76 and revenue of $525 million, with the 21% estimated year-over-year (YoY) topline growth marking a deceleration from 26% in the first quarter.
The guidance issued in early December calls for $0.68 to $0.69 in EPS on revenue of $633 million to $635 million.
Shares of larger peer Crowdstrike, Inc. (CRWD) plunged nearly 8% on Wednesday despite a quarterly beat. The market did not take kindly to a slowdown in key operational metrics and its mixed guidance.
Zscaler investors will also likely focus on key operating metrics such as deferred revenue and calculated billings, which grew at a 27% and 13% YoY, respectively.
Investors may also be keen to know whether the company tinkers with its fiscal year 2025 guidance, which models EPS of $2.94 to $2.99 and revenue of $2.623 billion to $2.643 billion.
Earlier this month, Barclays raised the price target for Zscaler stock to $250 from $220 and maintained an ‘Overweight’ rating. The firm braced for a $5 million to $10 million upside to estimates but sees slower scheduled billings as a pushback.
On Stocktwits, the retail sentiment toward Zscaler stock remained 'bullish' (72/100) and retail chatter picked up to ‘high’ levels.
Ahead of the results, a bullish watcher said they look forward to an earnings beat and the stock rising over $205.
Zscaler shares traded up 0.45% at $194.69 by Wednesday afternoon. The stock has gained about 7.5% so far this year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.