Zscaler's stock rockets as upbeat earnings offer relief to cybersecurity sector
By Emily Bary
Profit forecast tops the consensus view
After dropping about 5% in Thursday's regular session during a software-sector rout, Zscaler Inc.'s stock surged 16% in the extended session.
That after-hours movement came as the cybersecurity company topped expectations with its fiscal third-quarter results.
Zscaler (ZS) posted revenue of $553 million, up from $482.3 million a year before. Analysts tracked by FactSet were modeling $536 million.
Calculated billings were $628 million, up 30% from a year earlier, whereas analysts had been calling for $584 million.
"We delivered an outstanding quarter driven by growing customer interest in our Zero Trust Exchange platform," Chief Executive Jay Chaudhry said in a release.
He sees "an increasing number of enterprises" coming on board to Zscaler's platform. "To meet this demand, we are accelerating innovation, expanding our platform and building a strong go-to-market team to scale our business to $5 billion and beyond in [annual recurring revenue]," Chaudhry added.
The company's net income amounted to $19 million, or 12 cents cents a share, whereas it posted a loss of $46 million, or 32 cents a share, in the year-earlier period.
For the fiscal fourth quarter, Zscaler models $565 million to $567 million in revenue, while the FactSet consensus called for $565 million. The company's bottom-line outlook calls for 69 cents to 70 cents in adjusted earnings per share. Analysts were modeling 68 cents.
-Emily Bary
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
05-30-24 2022ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Q4 Stock Market Outlook: Where We See Opportunities for Investors
-
Markets Brief: Non-Farm Payrolls in the Spotlight Again
-
6 Top-Performing Large-Growth Funds
-
What’s the Difference Between the CPI and PCE Indexes?
-
10 Top-Performing Dividend Stocks of Q3 2024
-
33 Undervalued Stocks
-
Communication Services: Cable’s Broadband Dominance Isn’t as Strong as It Once Was
-
Technology: Strength Continues, With Software Presenting the Best Buying Opportunities
-
Best- and Worst-Performing Stocks of Q3 2024
-
Top Stocks to Own From the Best Fund Managers
-
2 Cheap Stocks Top Managers Have Been Buying
-
The 10 Best Companies to Invest in Now