Will healthy demand for cybersecurity solutions help Zscaler post Q4 earnings beat?
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Zscaler (NASDAQ:ZS) is scheduled to announce Q4 earnings results on Thursday, Sept. 8, after market close.
Consensus EPS estimate is $0.21 (+50% Y/Y) and consensus revenue estimate is $305.56M (+55% Y/Y).
Over the last 2 years, ZS has beaten EPS and revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 1 upward revision. Revenue estimates have seen 2 upward revisions and 1 downward.
BTIG downgraded ZS to Neutral, citing limited upside and signs of a potential slowdown, but still expects strong Q4 results.
Truist cut its PT on ZS due to uncertainty in intermediate-term outlook, but maintained its Buy rating as it believes ZS is well-positioned for long-term growth.
ZS shares gained after the cybersecurity firm posted strong Q3 results and raised its guidance. 
Wedbush maintained its Outperform rating on continued robust growth, with a 54% rise in billings. Citi also reiterated its Buy rating as ZS' underlying business is "solid" and over 80% of revenue for the next 12 months is "in the bag".
SA contributor Cestrian Capital said ZS' fundamentals are supported by large deferred revenue balance and an even larger RPO book, but enterprise customers reeling in software spending could impact results.
Shares of ZS, which dropped 51.5% YTD, underperformed the Nasdaq computer and Nasdaq-100 technology sector indexes in the last 1 year.