Zscaler (NASDAQ:ZS) Updates FY25 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its FY25 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of $2.81-$2.87 for the period, compared to the consensus estimate of $3.33. The company issued revenue guidance of $2.60-$2.62 billion, compared to the consensus revenue estimate of $2.62 billion. Zscaler also updated its FY 2025 guidance to 2.810-2.870 EPS.

Zscaler Stock Up 3.3 %

ZS opened at $162.25 on Friday. The company has a market capitalization of $24.52 billion, a P/E ratio of -318.14 and a beta of 0.82. The company has a debt-to-equity ratio of 1.04, a current ratio of 1.75 and a quick ratio of 1.75. The firm’s fifty day moving average price is $188.36 and its two-hundred day moving average price is $188.32. Zscaler has a fifty-two week low of $146.59 and a fifty-two week high of $259.61.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Tuesday, September 3rd. The company reported $0.88 EPS for the quarter, topping analysts’ consensus estimates of $0.70 by $0.18. The company had revenue of $592.90 million during the quarter, compared to the consensus estimate of $567.46 million. Zscaler had a negative net margin of 2.66% and a negative return on equity of 3.75%. The firm’s revenue for the quarter was up 30.3% compared to the same quarter last year. During the same period last year, the firm earned ($0.17) EPS. On average, analysts anticipate that Zscaler will post -0.38 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. UBS Group lowered their price objective on Zscaler from $270.00 to $250.00 and set a buy rating on the stock in a research note on Wednesday. Canaccord Genuity Group dropped their price objective on Zscaler from $260.00 to $220.00 and set a buy rating for the company in a research note on Tuesday, June 4th. Robert W. Baird reduced their target price on shares of Zscaler from $260.00 to $225.00 and set an outperform rating on the stock in a research note on Wednesday. Scotiabank dropped their target price on shares of Zscaler from $210.00 to $195.00 and set a sector outperform rating for the company in a research report on Wednesday. Finally, Cantor Fitzgerald reduced their price target on shares of Zscaler from $200.00 to $170.00 and set a neutral rating on the stock in a research report on Wednesday. Nine research analysts have rated the stock with a hold rating, twenty-five have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company presently has an average rating of Moderate Buy and an average price target of $217.41.

Insider Buying and Selling at Zscaler

In related news, CFO Remo Canessa sold 7,981 shares of Zscaler stock in a transaction on Thursday, June 20th. The stock was sold at an average price of $177.21, for a total transaction of $1,414,313.01. Following the completion of the sale, the chief financial officer now directly owns 243,486 shares of the company’s stock, valued at $43,148,154.06. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders own 19.20% of the company’s stock.

Zscaler Company Profile

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.