Zscaler (ZS) surged on Friday after the company reported fiscal fourth-quarter earnings, revenue and bills that handily beat Wall Street’s targets. The company’s 2023 financial forecast for Zscaler stock is presented in the views above.
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ZS stock jumped 21.9% to close at 188 days stock market today. The cybersecurity firm announced its July quarter earnings after the market closed on Thursday.
“Zscaler was the last (cybersecurity) company to report results for this earnings cycle, and it clearly stood out as providing the best results and strongest guidance,” Wells Fargo analyst Andrew Nowinsky said in a report.
He added, “The strong performance was largely a result of the fact that the company was built specifically for this type of macro environment, where budgets are tightening and companies are looking for ways to cut costs. Zscaler can eliminate many point products and simplify the electronic infrastructure, all That while cutting costs on the client.”
ZS stock: earnings, revenue outperform
Before Zscaler’s earnings release, the cybersecurity stock fell 54% in 2022.
The San Jose, California-based company said earnings were 25 cents per share on an adjusted basis, up 78% from 14 cents a year earlier. The company said revenue in the July quarter rose 61% to $318.1 million.
Analysts had expected Zscaler to report earnings of 21 cents per share on sales of $305.4 million. Billings also rose 57% to $520.4 million, compared to an estimate of $467.2 million.
For fiscal year 2023, which begins with the October quarter, Zscaler said it expects earnings of $1.17 per share in the middle of its forecast, ahead of estimates of $1.04 per share.
Zscaler said it expects revenue in the range of $1.49 billion to $1.50 billion. Analysts expected revenues to reach 1.468 billion dollars.
Zscaler Inventory: Billing Forecasts Top Estimates
The company expected fiscal bills for 2023 to be $1.93 billion, compared to an estimate of $1.859 billion.
“Despite the uncertain macroeconomic landscape that continues to evolve, we continue to see positive demand for our Zero Trust Exchange platform as it makes businesses more secure, simplifies information technology, and lowers cost,” CEO Jay Choudhury said in the company’s earnings statement.
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Heading to Zscaler’s earnings report, the company has a relative strength rating of 17 out of the top 99 possible, according to IBD stock check.
In addition, Zscaler provides cloud-based cybersecurity services across 150 data centers around the world
Zscaler web security portals scan customer data traffic for malware. Zscaler Private Access, or ZPA’s cloud service, replaces virtual private networks, or VPNs, to support remote work.
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