Zscaler stock drops after forecast outlook range dips below Street view

Zscaler Inc. shares dropped in the extended session Thursday after the cybersecurity company forecast an earnings range that dipped below Wall Street expectations following a rally in the regular session.

ZscalerĀ 
ZS,
+10.02%
shares dropped 15% after hours, following a 10% rally in the regular session to close at $263.38.

The company said it expects adjusted earnings of 10 cents to 11 cents a share on revenue of $270 million to $272 million for the fiscal third quarter, and 54 cents to 56 cents a share on revenue of about $1.05 billion for the year and billings of about $1.37 billion. Calculated billings is revenue plus deferred revenue acquired over the quarter.

Analysts had forecast earnings of 11 cents on revenue of $256.7 million for the fiscal first quarter, and 52 cents a share on revenue of $1.01 billion for the year and billings of $1.3 billion for the year.

The company reported a fiscal second-quarter loss of $100.4 million, or 71 cents a share, compared with a loss of $67.5 million, or 50 cents a share, in the year-ago period. Adjusted net income, which excludes stock-based compensation and other items, was 13 cents a share, compared with 10 cents a share in the year-ago period.

Revenue rose to $255.6 million from $157 million in the year-ago quarter. Calculated billings rose to $367.7 million from $232 million in the year-ago period.

Analysts surveyed by FactSet had forecast earnings of 11 cents a share on revenue of $241.1 million and billings of $316.9 million.

Source: https://www.marketwatch.com/story/zscaler-stock-drops-after-forecast-outlook-range-dips-below-street-view-11645738075?siteid=yhoof2&yptr=yahoo