Market Overview

Zscaler's Earnings: A Preview

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On Wednesday, December 02, Zscaler (NASDAQ:ZS) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sell-side analysts expect Zscaler's EPS to be near $0.06 on sales of $132.31 million. Zscaler reported a profit of $0.03 per share when it published results during the same quarter last year. Sales in that period totaled $93.59 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 100.0% increase for the company. Sales would be up 41.37% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019
EPS Estimate 0.03 0.02 0.03 0.01
EPS Actual 0.05 0.07 0.09 0.03
Revenue Estimate 118.55 M 106.30 M 98.97 M 89.79 M
Revenue Actual 125.89 M 110.52 M 101.27 M 93.59 M

Stock Performance

Shares of Zscaler were trading at $155.75 as of November 30. Over the last 52-week period, shares are up 204.57%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Zscaler is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings