Technology
What to Expect When Zscaler Reports After the Close
December 3, 2019 10:55 am
Last Updated: January 30, 2020 12:36 pm
Zscaler Inc. (NASDAQ: ZS) is scheduled to release its fiscal first-quarter results after the markets close on Tuesday. The consensus estimates are calling for $0.01 in earnings per share (EPS) and $89.79 million in revenue. The same period of last year reportedly had $0.01 in EPS and $63.3 million in revenue.
Previously issued guidance projected EPS in the range of flat to $0.01 and total revenue of $89 million to $90 million.
In the fiscal fourth quarter, revenues grew 53% year over year to $86.1 million. At the same time, deferred revenue increased 53% to $251.2 million, while calculated billings grew 32% to $125.8 million.
In mid-November, the company was added to the Department of Homeland Security (DHS) Continuous Diagnostics and Mitigation (CDM) Program Approved Products List (APL). The CDM program helps agencies identify and mitigate cyber risk and quickly implement new cybersecurity solutions. All federal agencies can purchase CDM products from the APL through the Dynamic and Evolving Federal Enterprise Network Defense acquisition strategy.
Stephen Kovac, Zscaler Vice President of Global Government and Compliance, commented:
Civilian and Department of Defense agencies currently use Zscaler to provide secure access to data and applications. The addition to the CDM APL further expands the federal market for Zscaler, enabling federal agencies to more quickly modernize and shift applications and infrastructure to the cloud. By procuring Zscaler cloud-delivered service, agencies can reduce cyber risk and significantly improve the end user experience.
Excluding Tuesday’s move, Zscaler had outperformed the broad markets, with the stock up about 30% year to date. In the past 52 weeks, the stock was up closer to 36%.
A few analysts weighed in on Zscaler ahead of the report:
Shares of Zscaler traded down over 1% to $50.35 on Tuesday, in a 52-week range of $34.21 to $89.54. The consensus price target is $62.61.