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What Analyst Projections for Key Metrics Reveal About Zscaler (ZS) Q4 Earnings

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In its upcoming report, Zscaler (ZS - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.80 per share, reflecting a decline of 9.1% compared to the same period last year. Revenues are forecasted to be $706.23 million, representing a year-over-year increase of 19.1%.

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.

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 usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

With that in mind, let's delve into the average projections of some Zscaler metrics that are commonly tracked and projected by analysts on Wall Street.

Based on the collective assessment of analysts, 'Revenues- Direct Customers' should arrive at $81.56 million. The estimate indicates a change of +30.8% from the prior-year quarter.

Analysts forecast 'Revenues- Channel Partners' to reach $624.07 million. The estimate indicates a year-over-year change of +17.6%.

Analysts expect 'Billings' to come in at $1.14 billion. The estimate is in contrast to the year-ago figure of $910.83 million.

The consensus estimate for 'Remaining Performance Obligations' stands at $5.52 billion. Compared to the current estimate, the company reported $4.42 billion in the same quarter of the previous year.

The collective assessment of analysts points to an estimated 'Dollar-Based Net Retention Rate' of 114.3%. The estimate compares to the year-ago value of 115.0%.

View all Key Company Metrics for Zscaler here>>>

Zscaler shares have witnessed a change of -7.7% in the past month, in contrast to the Zacks S&P 500 composite's +1.3% move. With a Zacks Rank #3 (Hold), ZS is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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