Analysts on Wall Street project that Zscaler (ZS) will announce quarterly earnings of $0.85 per share in its forthcoming report, representing an increase of 10.4% year over year. Revenues are projected to reach $773.35 million, increasing 23.2% from the same quarter last year.
Over the last 30 days, there has been an upward revision of 2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific Zscaler metrics that are commonly monitored and projected by Wall Street analysts.
It is projected by analysts that the 'Revenues- Direct Customers' will reach $92.97 million. The estimate points to a change of +33.6% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenues- Channel Partners' should arrive at $680.24 million. The estimate suggests a change of +21.8% year over year.
Analysts expect 'Billings' to come in at $615.21 million. Compared to the current estimate, the company reported $516.70 million in the same quarter of the previous year.
Analysts predict that the 'Dollar-Based Net Retention Rate' will reach 114.1%. The estimate is in contrast to the year-ago figure of 114.0%.
The consensus among analysts is that 'Remaining Performance Obligations' will reach $5.65 billion. The estimate is in contrast to the year-ago figure of $4.41 billion.
View all Key Company Metrics for Zscaler here>>>
Zscaler shares have witnessed a change of -12.3% in the past month, in contrast to the Zacks S&P 500 composite's -2.8% move. With a Zacks Rank #3 (Hold), ZS is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Zscaler, Inc. (ZS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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