Zscaler (ZS) on Monday reported fiscal first-quarter earnings and revenue that topped Wall Street targets for ZS stock. The cybersecurity firm’s guidance for Zscaler stock edged by views amid high expectations.
X
Reporting after the close, Zscaler earnings rose 131% to 67 cents a share from a year earlier on an adjusted basis. Revenue climbed 40% to $496.7 million, the San Jose, Calif.-based firm said.
ZS stock analysts expected earnings of 49 cents per share on sales of $473.4 million.
Also, billings rose 34% to $456.6 million, compared with estimates for $442.7 million.
ZS Stock: Guidance Conservative?
For the current quarter ending in January, Zscaler said it expects earnings per share in a range of 57 cents to 58 cents, ahead of estimates for 52 cents a share.
Zscaler said it expects revenue of $506 million at the mid-point of guidance. Analysts had predicted revenue of $496.7 million.
On the stock market today, ZS stock fell 6.8% to near 179 in extended trading.
Heading into the Zscaler earnings release, the cybersecurity stock had gained 73% in 2023. Also, Zscaler stock owned a Relative Strength Rating of 96 out of a best-possible 99, according to IBD Stock Checkup.
Zscaler provides cloud-based cybersecurity services via 150 data centers worldwide Zscaler’s web security gateways inspect customers’ data traffic for malware.
Further, the Zscaler Private Access, or ZPA cloud service, replaces virtual private networks, or VPNs, to support remote work.
Zscaler competes with Palo Alto Networks (PANW) and Microsoft (MSFT).
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
YOU MIGHT ALSO LIKE:
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
Learn How To Time The Market With IBD’s ETF Market Strategy
How To Use The 10-Week Moving Average For Buying And Selling
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
