We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zscaler (ZM) to Report Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
Zscaler (ZS - Free Report) is set to report fourth-quarter fiscal 2019 results on Sep 10.
Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 400%.
In third-quarter fiscal 2019, the company reported adjusted earnings of 5 cents per share beating the Zacks Consensus Estimate by 4 cents. Revenues of $79.1 million surged 61% year over year and comfortably surpassed the consensus mark of $75 million.
For the fourth quarter, the company expects total revenues between $81 million and $83 million. Non-GAAP earnings are expected between a penny and 2 cents.
The Zacks Consensus Estimate for earnings stayed flat at a cent over the past 30 days. The consensus mark for revenues is pegged at $82.2 million.
Let’s see how things are shaping up for this announcement.
Factors to Watch
Zscaler’s expanding portfolio strengthens its competitive position and boosts its user base. Growing adoption of the company’s cloud platform security solutions by enterprises is noteworthy.
Additionally, the company’s ability to provide cloud-based security solutions irrespective of the users’ “device or location” is a key catalyst. This is expected to have helped the company win customers in the to-be-reported quarter.
Zscaler cloud’s capability to effectively handle web traffic and block any unnecessary interference on Microsoft's (MSFT - Free Report) Office 365 is another major growth driver. The company is also helping enterprises mitigate a number of encrypted SSL-based threats.
Further, the partnership with NTT Communications expands Zscalers’ global footprint.
The above-mentioned factors are expected to drive fourth-quarter revenue results.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. Meanwhile, the Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Zscaler has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are a couple of stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Oracle (ORCL - Free Report) has an Earnings ESP of +0.10% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
Zscaler (ZM) to Report Q4 Earnings: What's in the Cards?
Zscaler (ZS - Free Report) is set to report fourth-quarter fiscal 2019 results on Sep 10.
Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 400%.
In third-quarter fiscal 2019, the company reported adjusted earnings of 5 cents per share beating the Zacks Consensus Estimate by 4 cents. Revenues of $79.1 million surged 61% year over year and comfortably surpassed the consensus mark of $75 million.
For the fourth quarter, the company expects total revenues between $81 million and $83 million. Non-GAAP earnings are expected between a penny and 2 cents.
The Zacks Consensus Estimate for earnings stayed flat at a cent over the past 30 days. The consensus mark for revenues is pegged at $82.2 million.
Zscaler, Inc. Price and EPS Surprise
Zscaler, Inc. price-eps-surprise | Zscaler, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Watch
Zscaler’s expanding portfolio strengthens its competitive position and boosts its user base. Growing adoption of the company’s cloud platform security solutions by enterprises is noteworthy.
Additionally, the company’s ability to provide cloud-based security solutions irrespective of the users’ “device or location” is a key catalyst. This is expected to have helped the company win customers in the to-be-reported quarter.
Zscaler cloud’s capability to effectively handle web traffic and block any unnecessary interference on Microsoft's (MSFT - Free Report) Office 365 is another major growth driver. The company is also helping enterprises mitigate a number of encrypted SSL-based threats.
Further, the partnership with NTT Communications expands Zscalers’ global footprint.
The above-mentioned factors are expected to drive fourth-quarter revenue results.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. Meanwhile, the Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Zscaler has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are a couple of stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Micron Technology (MU - Free Report) has an Earnings ESP of +7.76% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oracle (ORCL - Free Report) has an Earnings ESP of +0.10% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>