Investors Eye Zscaler’s Q2 Results After Rival Crowdstrike’s Mixed Print: Retail Stays Bullish

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.

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