Zscaler Inc. shares posted their best one-day performance since their initial public offering Friday after the cybersecurity company forecast a strong outlook amid concerns business spending may pull back in the face of economic uncertainty. Zscaler
shares rallied more than 22% Friday to close at $188, just short of their intraday high of $188.73, putting them on track for their best one-day performance since the stock started trading back in 2018 and more than doubled the IPO price on the first day of trading.
Zscaler topped the Wall Street consensus across the board for its quarterly results and outlook for the year on Thursday, prompting analysts to raise their fiscal forecasts to an average $1.16 a share on revenue of $1.49 billion and billings of $1.94 billion. Before Zscaler’s report, analysts had forecast earnings of $1.04 a share on revenue of $1.47 billion and billings of $1.86 billion for the year. Citi Research analyst Fatima Boolani, who has a buy rating, said Zscaler’s “robust print should mute percolating competitive fears,” and that stock action after the report was “a relief rally” as shares were down 52% for the year to date as of Thursday’s close. “More importantly, despite the strong FY22 finish, FY23E billings outlook of ~30% [uear-over-year] at the midpoint still matched Street’s expectations — that on a higher base,” Boolani said. Full earnings coverage: Zscaler stock scales higher after hours as earnings …