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Countdown to Zscaler (ZS) Q3 Earnings: A Look at Estimates Beyond Revenue and EPS

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The upcoming report from Zscaler (ZS - Free Report) is expected to reveal quarterly earnings of $0.75 per share, indicating a decline of 14.8% compared to the year-ago period. Analysts forecast revenues of $666.11 million, representing an increase of 20.4% year over year.

Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Zscaler metrics that are commonly monitored and projected by Wall Street analysts.

The average prediction of analysts places 'Revenues- Direct Customers' at $76.85 million. The estimate points to a change of +51.2% from the year-ago quarter.

The consensus estimate for 'Revenues- Channel Partners' stands at $589.01 million. The estimate indicates a change of +17.3% from the prior-year quarter.

Analysts' assessment points toward 'Billings' reaching $792.21 million. The estimate compares to the year-ago value of $628.04 million.

Based on the collective assessment of analysts, 'Remaining Performance Obligations' should arrive at $4.73 billion. The estimate compares to the year-ago value of $3.82 billion.

Analysts predict that the 'Dollar-Based Net Retention Rate' will reach 115.0%. The estimate compares to the year-ago value of 116%.

View all Key Company Metrics for Zscaler here>>>

Shares of Zscaler have demonstrated returns of +17.9% over the past month compared to the Zacks S&P 500 composite's +8.2% 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 >>>>


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