Shares of ZScaler (NASDAQ: ZS) fell over 11% in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2023. Earnings per share came in at $0.29, which beat analysts’ consensus estimate of $0.26 per share.
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Sales increased by 54% year-over-year, with revenue hitting $355.5 million. This beat analysts’ expectations of $340.8 million.
Looking forward, management now expects revenue and adjusted earnings per share for Q2 2023 to be in the ranges of $364 million to $366 million and $0.29 to $0.30, respectively. For reference, analysts were expecting $355.4 million in revenue along with an adjusted EPS of $0.26.
Overall, Wall Street has a consensus price target of $206.44 on ZS stock, implying 42.82% upside potential, as indicated by the graphic above.
