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Zscaler Stock Climbs As Cybersecurity Firm’s Earnings, Guidance Top Estimates

Zscaler stock climbed after the cybersecurity firm reported earnings, revenue and billings for its fiscal first quarter that topped Wall Street targets. Revenue guidance for ZS stock in the January quarter also came in above views.




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San Jose, Calif-based Zscaler (ZS) reported earnings after the market close on Tuesday. Zscaler earnings were 14 cents a share on an adjusted basis, the same as a year earlier. Revenue rose 62% to $230.5 million, the cybersecurity company said.

Analysts expected Zscaler earnings of 12 cents per share on sales of $212 million. Also, billings rose 71% to $247.7 million, blowing past estimates of $204 million.

For the current quarter ending in January, the company expects earnings of 11 cents a share amid higher investments in its sales force. Analysts had projected earnings of 12 cents a share. Zscaler expects revenue of $241 million vs. estimates of $224.8 million.

Zscaler Stock Holds High Relative Strength Rating

Shares in Zscaler rose 5.3% to 365.50 during extended trading on the stock market today. The cybersecurity stock had advanced 68% in 2021 just ahead of the Zscaler earnings report.

Zscaler said it plans to expand product integrations with CrowdStrike Holdings (CRWD), which reports earnings on Wednesday.

ZS stock owned a Relative Strength Rating of 95 out of a best-possible 99, according to IBD Stock Checkup.

Zscaler stock jumped in 2020 amid a corporate shift to remote work during the early coronavirus crisis. That increased demand for its web security gateways that inspect customers’ data traffic for malware.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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