Zscaler (ZS) Stock: Soaring On Earnings

Zscaler Inc (NASDAQ: ZS) is soaring in the market today, and for good reason. The company announced its earnings, beating expectations on all accounts. Of course, the news excited investors who are pushing the stock for the top. Today, we’ll talk about:

  • The earnings report;
  • what we’re seeing from ZS stock as a result; and
  • what we’ll be watching for ahead.

ZS Announces Earnings

As mentioned above, Zscaler is having a great day in the market today after reporting its earnings for the second fiscal quarter. Here’s what we saw from the report:

  • Revenue – In terms of revenue, ZS did overwhelmingly well. During the second quarter, analysts expected that the company would generate revenue in the amount of $66.4 million. The company actually reported revenue in the amount of $74.3 million. That figure not only beat expectations, but showed strong year over year growth from the $45 million reported a year ago.
  • Earnings – Earnings also proved to be a hit for ZS. During the quarter, the company generated adjusted earnings in the amount of $0.09 per share. Analysts expected that the company would generate a loss of $0.01 per share.
  • Guidance – In the current quarter, the company said that it expects to generate earnings of $0.01 on revenue between $74 and $75 million. Analysts expect to see a loss of $0.02 on $68.6 million in revenue. For the full year, revenue is expected to come in between $289 and $291 million and calculated billings are expected bwteen $365 and $370 million.

In a statement, Jay Chaudhry, Chairman and CEO at ZS, had the following to offer:

We are seeing success in disrupting the traditional network security market, with a globally distributed cloud security platform that consistently applies policies and protections no matter the device or location. We are increasingly viewed as a strategic foundation to our customers’ network and security transformation towards a cloud and mobile first world.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news causes moves, especially earnings news. In the case of Zscaler, the news proved to be positive.

Not only did the company beat expectations on the top and bottom line, it also set the stage for a strong 2019 year with great guidance. So, it’s not surprising to see that excited investors are pushing the stock up.

As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:06), ZS is trading at $59.67 per share after a gain of $9.99 per share or 20.11% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on ZS. In particular, we’re interested in following the story surrounding the company’s continued work to expand sales and value for investors. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!

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