Zscaler Reports Q4 Earnings Beat and Growth Insights
Zscaler Exceeds Q4 Earnings Expectations
Zscaler (NASDAQ: ZS) has announced its quarterly earnings, reporting an impressive $0.88 per share. This figure surpasses the consensus estimate of $0.69 per share and marks an increase from $0.64 per share reported a year earlier, adjusted for non-recurring items.
This quarter reflects an earnings surprise of 27.54%. In the previous quarter, analysts anticipated earnings of $0.65 per share, while Zscaler achieved $0.88, resulting in a surprise of 35.38%. The company has consistently achieved consensus EPS estimates for the last four quarters.
In addition to earnings, Zscaler reported revenues totaling $592.87 million for the quarter ending in July 2024. This surpassed the market expectations by 4.45%, a notable increase from the $455.01 million in revenues recorded during the same quarter last year. The company has a strong record of exceeding consensus revenue estimates consistently over the last four quarters.
Market Reaction and Trends
Following the earnings release, the sustainability of Zscaler's stock price will largely hinge on the insights provided during the management's earnings call. As it stands, shares of Zscaler have seen a decline of approximately 9.7% since the start of the year, contrasting with the S&P 500's increase of 18.4%.
Future Prospects for Zscaler
As investors ponder the future of Zscaler, the key question revolves around the company's upcoming earnings outlook. Analyzing current consensus expectations and revisions can provide valuable guidance. Research shows a strong link between stock performance and the trajectory of earnings estimates.
The current revisions trend for Zscaler is varied. While recent earnings reports may influence future estimates, the stock holds a Zacks Rank #3 (Hold) rating. This suggests that it is predicted to perform similarly to the market in the short term.
Market analysts are keenly watching the upcoming estimates for the next quarter, currently projected at $0.72 per share with anticipated revenues of $598.89 million. For the current fiscal year, the consensus EPS estimate stands at $3.27, alongside revenues of $2.6 billion.
Understanding Industry Dynamics
The broader industry outlook also plays a critical role in influencing Zscaler's stock movement. The Internet - Services sector currently ranks in the top 31% of over 250 Zacks industries. Historically, industries in the top half have outperformed those in the bottom half by more than double.
Insights from Competitors
This quarter has also seen attention on Ciena, a player in the technology sector, which will soon release its results for the same timeframe. Expectations suggest Ciena will report quarterly earnings of $0.26 per share, representing a decline of 55.9% year-over-year, with projected revenues of $927.49 million, signifying a drop of 13.2% from last year.
Frequently Asked Questions
What were Zscaler's earnings per share for the recent quarter?
Zscaler reported earnings of $0.88 per share for the recent quarter.
How did Zscaler's revenue compare to expectations?
Zscaler's revenue of $592.87 million surpassed the consensus estimate by 4.45%.
What is Zscaler's current stock ranking?
Zscaler holds a Zacks Rank of #3, indicating a 'Hold' recommendation.
How does the Internet - Services industry rank?
The Internet - Services industry is currently in the top 31% of Zacks-ranked industries.
What can investors expect from Zscaler's earnings outlook?
The consensus EPS estimate for Zscaler's next quarter stands at $0.72, with expectations of continued growth.
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