Cybersecurity firm Zscaler (NASDAQ:ZS) is set to post second quarter results on Thursday after markets close.
Wall Street expects the San Jose, California-based company to post EPS of $0.58, implying a rise of 56.8%, while revenue is expected to rise 30.8% to $506.81 million.
Robust demand for cybersecurity and networking solutions services across industries has benefited companies such as Zscaler. Analysts are saying that cybersecurity sector is seeing a strong comeback this year.
Seeking Alpha analyst Dair Sansyzbayev said the market’s reaction to Zscaler’s earnings will depend on the management’s forward-looking views and near-term guidance.
Needham is expecting “strong” figures and better-than-expected guidance. The brokerage also added that Zscaler is also likely to show an increase in margins even as it increases its investments to attract new clients.
Earlier in November, the company posted first quarter results that topped Wall Street’s estimate, even though there was some disappointment regarding its billings forecast. Since then, the stock gained nearly 26%.
Overall, the stock gained nearly 80% in the last one year, outperforming the over 20% rise in the broader S&P500 Index.
Over the last 2 years, ZS has beaten both EPS and revenue estimates 100% of the time.
Seeking Alpha analysts, Wall Street as well as Seeking Alpha’s Quant ratings are bullish and consider the stock a Buy and above.
Over the last 3 months, EPS estimates have seen 34 upward revisions and no downward revisions. Revenue estimates have seen 29 upward revisions versus one downward move.
Source link
