Zscaler Q3 2023 Earnings Preview
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Zscaler (NASDAQ:ZS) is scheduled to announce Q3 earnings results on Thursday, June 1st, after market close.
The consensus EPS Estimate is $0.42 (+147.1% Y/Y) and the consensus Revenue Estimate is $411.7M (+43.5% Y/Y).
Earlier this month, the company raised Q3 and FY2023 outlook. The company anticipated revenue in the range of $415M to $419M vs. prior guidance of $396M to $398M for the quarter and between $1.587B to $1.591B vs. previously estimated range of $1.558B to $1.563B for the year.
Over the last 2 years, ZS has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 29 upward revisions and 0 downward. Revenue estimates have seen 27 upward revisions and 0 downward.
Analysts rating:
Baird lowered the price target on Zscaler to $165 from $180 and maintained an Outperform rating on the shares. he analyst said the company's earnings upside preannouncement was a surprise given the prevailing macro/competitive-concerns and despite challenges from difficult comps/macro uncertainties, zero-trust/SASE demand continues per checks.
BMO Capital raised the price target on the stock to $120 from $115 and maintained an Outperform rating on the shares, citing positive Q3 preliminary announcement and how Zscaler has held up against macro headwinds that likely continue to negatively impact the business, though BMO Capital also remains concerned on the state of increasing competition.
On YTD basis, shares have risen more than 20%.