Shares of cybersecurity firm Zscaler (NASDAQ:ZS) surged in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2024. Earnings per share came in at $0.88, which beat analysts’ consensus estimate of $0.66 per share.
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Sales increased by 32.1% year-over-year, with revenue hitting $553.2 million. This beat analysts’ expectations by $17.11 million. In addition, free cash flow increased to $123.1 million versus the $73.9 million seen in Q3 2023. In addition, the free cash flow margin climbed from 18% to 22% during the same time period.
Looking forward, management now expects revenue and adjusted earnings per share for Q4 2024 to be in the ranges of $565 million to $567 million and $0.69 to $0.70, respectively. For FY 2024, these figures jump to a range of $2.140 billion to $2.142 billion for revenue and $2.99 to $3.01 for EPS.
Bloggers Are Optimistic about ZS Stock
Using TipRanks’ Blogger Opinion tool, we can see that bloggers are optimistic about ZS stock. Indeed, of the 46 ZS writers tracked by TipRanks, 90% of them are bullish, which is higher than the sector average, as pictured below.
Is ZS Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ZS stock based on 20 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 28% year-to-date decline, the average ZS price target of $240.96 per share implies 50.18% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
