Back to top

Image: Bigstock

Wall Street's Insights Into Key Metrics Ahead of Zscaler (ZS) Q2 Earnings

Read MoreHide Full Article

Wall Street analysts expect Zscaler (ZS - Free Report) to post quarterly earnings of $0.69 per share in its upcoming report, which indicates a year-over-year decline of 9.2%. Revenues are expected to be $634.07 million, up 20.8% from the year-ago quarter.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

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 typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

That said, let's delve into the average estimates of some Zscaler metrics that Wall Street analysts commonly model and monitor.

The collective assessment of analysts points to an estimated 'Revenues- Direct Customers' of $63.60 million. The estimate indicates a change of +43.2% from the prior-year quarter.

Analysts forecast 'Revenues- Channel Partners' to reach $569.57 million. The estimate indicates a change of +18.5% from the prior-year quarter.

Based on the collective assessment of analysts, 'Billings' should arrive at $728.57 million. Compared to the current estimate, the company reported $627.60 million in the same quarter of the previous year.

Analysts expect 'Remaining Performance Obligations' to come in at $4.38 billion. The estimate compares to the year-ago value of $3.61 billion.

It is projected by analysts that the 'Dollar-Based Net Retention Rate' will reach 114.8%. The estimate is in contrast to the year-ago figure of 117%.

View all Key Company Metrics for Zscaler here>>>

Shares of Zscaler have demonstrated returns of -5.3% over the past month compared to the Zacks S&P 500 composite's -2.4% change. With a Zacks Rank #3 (Hold), ZS is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Zscaler, Inc. (ZS) - free report >>

Published in