Zscaler Stock Climbs As Cybersecurity Firm’s Earnings, Guidance Top Estimates

Zscaler stock climbed after the cybersecurity firm reported earnings, revenue and billings for its fiscal first quarter that topped Wall Street targets. Revenue guidance for ZS stock in the January quarter also came in above views.

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San Jose, Calif-based Zscaler (ZS) reported earnings after the market close on Tuesday. Zscaler earnings were 14 cents a share on an adjusted basis, the same as a year earlier. Revenue rose 62% to $230.5 million, the cybersecurity company said.

Analysts expected Zscaler earnings of 12 cents per share on sales of $212 million. Also, billings rose 71% to $247.7, blowing past estimates of $204 million.

For the current quarter ending in January, the company says it expects earnings of 11 cents a share amid higher investments in its salesforce. Analysts had projected earnings of 12 cents a share. Zscaler said it expects revenue of $241 million vs. estimates of $224.8 million.

Zscaler Stock Holds High Relative Strength Rating

Shares in Zscaler rose 4.4% to 362.20 in extended trading on the stock market today. The cybersecurity stock had advanced 68% in 2021 heading into the Zscaler earnings release.

ZS stock owned a Relative Strength Rating of 95 out of a best-possible 99, according to IBD Stock Checkup.

Zscaler stock jumped in 2020 amid a corporate shift to remote work amid the coronavirus crisis. It increased demand for its web security gateways that inspect customers' data traffic for malware.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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