Cybersecurity giant Zscaler (ZS) has just revealed a stellar fiscal fourth quarter, surpassing Wall Street’s forecasts in earnings, revenue, and billings.
|Earnings Beat||📈 Zscaler reported earnings that exceeded expectations, indicating strong financial performance.|
|Revenue Growth||📈 The company experienced substantial revenue growth, a positive sign for its financial health.|
|Billings Surge||📈 Billings increased significantly, surpassing estimates, suggesting strong demand for Zscaler’s services.|
|Fiscal 2024 Outlook||📅 Zscaler’s outlook for fiscal 2024 forecasts higher earnings and revenue, signaling confidence in future growth.|
|Earnings Forecast||💼 The company expects higher earnings per share, reflecting optimism about its financial prospects.|
|Revenue Expectations||🤑 Zscaler anticipates increased revenue, aligning with positive expectations for its financial performance in the coming year.|
|Market Response||📉📈 ZS stock initially rose but later dipped, reflecting market volatility and uncertainty despite positive results.|
|Stock Performance||📊 ZS stock has shown resilience, climbing above the 50-day moving average, and maintaining a strong Relative Strength Rating.|
|Relative Strength Rating||📈 Zscaler’s stock is performing well relative to peers, with a high Relative Strength Rating, indicating strength in the market.|
|Cloud-Based Services||☁️🔒 Zscaler provides cloud-based cybersecurity services, a growing sector in high demand due to increasing cybersecurity threats.|
|Cybersecurity Offerings||🌐🛡️ Zscaler’s offerings, such as web security gateways and ZPA cloud service, position it as a strong competitor in the cybersecurity industry.|
|Industry Rivals||🤝🏁 Competitors like Palo Alto Networks and Microsoft are challenging Zscaler in the cybersecurity market.|
Even more impressive, the company’s fiscal 2024 outlook has exceeded expectations, turning heads in the market. While ZS stock initially surged on this news, it later experienced a slight dip.
Leading up to this financial report, Zscaler had already demonstrated its strength by achieving a remarkable 41% increase in stock value throughout 2023.
For the fourth quarter, Zscaler reported adjusted earnings of 64 cents per share, marking an impressive 156% growth compared to the prior year’s 25 cents. The July quarter also saw revenue climb by 43%, reaching $455 million.
Analysts had anticipated earnings of 49 cents per share on revenue of $430.4 million. Notably, billings for the quarter soared to $719.3 million, well above the expected $660 million.
Looking forward to fiscal 2024, commencing with the October quarter, Zscaler has set an earnings forecast ranging from $2.20 to $2.25 per share, surpassing the expected $2.11.
Revenue expectations for the fiscal year fall within a range of $2.05 billion to $2.065 billion, slightly exceeding analyst projections of $2.05 billion.
RBC Capital analyst Matthew Hedberg praised Zscaler’s performance, stating that they “delivered a strong finish to their fiscal year with a beat across the board as fiscal 2024 guidance is above consensus.”
While ZS stock initially experienced growth following the earnings report, extended trading saw a slight decline of 1.2% to $160.73.
Before the report, ZS shares had managed to regain strength above the 50-day moving average. Additionally, the stock boasted an impressive Relative Strength Rating of 86 out of a possible 99, according to IBD Stock Checkup.
Zscaler, known for its cloud-based cybersecurity services, operates through an extensive network of 150 data centers worldwide.
The company’s web security gateways play a pivotal role in examining customer data traffic for malware, while its Zscaler Private Access (ZPA) cloud service has effectively replaced traditional virtual private networks (VPNs) in supporting remote work.
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