Why Zscaler Stock Is Rising After Hours

Zscaler Inc ZS shares are trading higher in Thursday's after-hours session after the company reported fiscal fourth-quarter results that beat analyst estimates and issued strong guidance. 

Zscaler said fiscal fourth-quarter revenue jumped 61% year-over-year to $318.1 million, which beat average analyst estimates of $305.41 million, according to Benzinga Pro. The company reported quarterly adjusted earnings of 25 cents per share, which beat average analyst estimates of 20 cents per share.

"Despite the uncertain macroeconomic landscape which continues to evolve, we continue to see favorable demand for our Zero Trust Exchange platform because it makes businesses more secure, simplifies IT, and reduces cost," said Jay Chaudhry, chairman, and CEO of Zscaler.

Zscaler expects fiscal first-quarter revenue to be between $339 million and $341 million versus the estimate of $324.84 million. Third-quarter adjusted earnings are expected to reach approximately 26 cents per share.

The company expects full-year 2023 revenue to be between $1.49 billion and $1.5 billion versus the estimate of $1.47 billion. Zscaler expects full-year adjusted earnings to be in a range of $1.16 per share to $1.18 per share.

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ZS Price Action: Zscaler has a 52-week high of $323.55 and a 52-week low of $125.12.

The stock was up 7.47% in after-hours at $165.78 at the time of writing.

Photo: Gerd Altmann from Pixabay.