Zscaler Q2 2023 earnings preview: What to expect?
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Zscaler (NASDAQ:ZS) is scheduled to announce Q2 earnings results on Thursday, March 2nd, after market close.
The consensus EPS Estimate is $0.29 (+123.1% Y/Y) and the consensus Revenue Estimate is $364.78M (+42.7% Y/Y).
Over the last 3 months, EPS estimates have seen 31 upward revisions and 1 downward. Revenue estimates have seen 28 upward revisions and 2 downward.
Going into earnings season, Wedbush Securities did another round of channel checks for the cybersecurity sector and tagged Zscaler (ZS) among companies that will perform better than others.
Bank of America's Tal Liani named Zscaler among its top picks in the cybersecurity space early this year, citing conservative guidance. Wells Fargo too highlighted the cloud security company as its top software pick for 2023, citing the belief it is the "most resilient" to the challenging global economy.
Meanwhile, Needham has suggested ZScaler (ZS) "does not appear to be seeing the same level of deceleration as peers given its strong pipeline, larger deal sizes and ability to sustain pricing".
On the other hand, Morgan Stanley analyst Hamza Fodderwala downgraded Zscaler noting that a difficult near-term time frame.
More recently, RBC Capital Markets expect a slight upside to results, although an uneven macro environment, incremental risk from prior sales reorganization and lower job postings will lead to lower growth than prior quarters.
Over the last 2 years, ZS has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.