Why Are Zscaler Shares Trading Lower After Q2 Earnings Beat?

Shares of Zscaler Inc ZS are trading lower in Thursday’s after market session following an earnings beat. Here’s what investors need to know.

By The Numbers: Zscaler reported second-quarter earnings per share of 37 cents, beating consensus estimates of 29 cents. Revenue $387.6 million beat the $364.91-million consensus estimate. 

The company issued third-quarter guidance ahead of estimates as well. Zscaler sees third-quarter EPS of 39 cents, beating consensus estimates of 31 cents. Revenue guidance of between $396 million and $398 million is ahead of the $387.32-million estimate. 

Shares could be trading lower as the company announced a restructuring plan that wold see a 3% worldwide headcount reduction, and said it expects to incur between $8 million and $10 million in aggregate non-recurring charges.

ZS Price Action: Shares of Zscaler are trading 11.28% lower to $119 according to Benzinga Pro.