Zscaler Inc. (NASDAQ:ZS) delivered beat expectations on the top and bottom lines with its fiscal first-quarter results, and, while the stock hasn’t moved much, analysts at Wedbush came away impressed.
The cybersecurity company posted adjusted earnings of $0.67 per share, higher than the $0.49 per share expected by analysts. Revenue was $496.7 million, which also topped expectations of $473.4 million.
“We continue to believe that ZS is a top name in this space to own as this cloud cyber security shift accelerates as this was an impressive quarter in a murky economic backdrop as the company is in the early days of leading the way on zero trust architecture and protecting cloud workloads,” the analysts wrote.
Wedbush reiterated its Outperform rating for the stock and upped its price target to $210 from $185. Shares of Zscaler initially fell about 6% after hours Monday but were close to flat at $191.42 by early Tuesday afternoon.
Looking ahead, Zscaler reiterated its full-year revenue guidance of $2.52 billion to $2.56 billion, “which continues to be a conservative and prudent bar in our view given the underlying strength that ZS is seeing in the field,” analysts wrote.
“ZS is capitalizing on the current market opportunity with customers adopting and innovating to build its pipeline,” they added.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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