Zscaler sinks 12% but Wedbush defends as 'momentum continues'
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Despite posting fiscal second-quarter results that topped estimates, Zscaler (NASDAQ:ZS) shares sank more than 12% in premarket trading on Friday, prompting investment firm Wedbush Securities to defend the cybersecurity company.
Analyst Dan Ives, who has an outperform rating on Zscaler (ZS), noted that the billings figure of $493.8M during the period was "not the typical massive ... beat" investors have come to expect from Zscaler (ZS), as there seems to be more scrutiny on budgets and longer sales cycles.
Nonetheless, federal cybersecurity spending looks "robust" and the sharp decline could be a buying opportunity for investors, Ives explained. "In our opinion [Zscaler] remains a gold standard cyber name to own and we would be buyers on weakness for this high quality zero trust growth name going through a near-term uncertain macro." 
Looking to the third-quarter, Zscaler (ZS) expects revenue to be between $396M and $398M, with adjusted earnings to be around 39 cents per share.
For the full-year, the company expects revenue to be between $1.558B and $1.563B, with calculated billings between $1.935B and $1.945B. 
Last month, Zscaler (ZS) announced plans to acquire application security platform company Canonic Security.