Zacks: Brokerages Expect Zendesk Inc (ZEN) Will Post Quarterly Sales of $192.75 Million

Brokerages predict that Zendesk Inc (NYSE:ZEN) will report sales of $192.75 million for the current quarter, according to Zacks Investment Research. Nine analysts have made estimates for Zendesk’s earnings, with estimates ranging from $191.70 million to $195.10 million. Zendesk reported sales of $141.88 million in the same quarter last year, which indicates a positive year-over-year growth rate of 35.9%. The firm is scheduled to announce its next quarterly earnings report on Tuesday, July 30th.

On average, analysts expect that Zendesk will report full year sales of $807.28 million for the current year, with estimates ranging from $800.23 million to $816.20 million. For the next year, analysts forecast that the firm will post sales of $1.05 billion, with estimates ranging from $1.04 billion to $1.07 billion. Zacks Investment Research’s sales calculations are an average based on a survey of sell-side research firms that follow Zendesk.

Zendesk (NYSE:ZEN) last announced its quarterly earnings results on Tuesday, April 30th. The software maker reported ($0.28) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.28). Zendesk had a negative net margin of 22.52% and a negative return on equity of 25.37%. The company had revenue of $181.48 million for the quarter, compared to analysts’ expectations of $179.53 million. During the same quarter in the previous year, the company earned $0.02 earnings per share. Zendesk’s quarterly revenue was up 39.8% on a year-over-year basis.

Several brokerages recently issued reports on ZEN. Morgan Stanley boosted their price target on shares of Zendesk from $97.00 to $102.00 and gave the company an “overweight” rating in a research report on Wednesday, May 1st. KeyCorp upped their price objective on shares of Zendesk from $71.00 to $92.00 and gave the stock an “overweight” rating in a report on Wednesday, February 6th. Bank of America restated a “buy” rating and issued a $105.00 price objective (up previously from $100.00) on shares of Zendesk in a report on Wednesday, May 1st. Craig Hallum upped their price objective on shares of Zendesk from $68.00 to $84.00 and gave the stock a “buy” rating in a report on Wednesday, February 6th. Finally, Zacks Investment Research cut shares of Zendesk from a “buy” rating to a “hold” rating and set a $98.00 price objective on the stock. in a report on Friday, May 3rd. Five equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $90.93.

Shares of NYSE ZEN opened at $87.96 on Monday. Zendesk has a 1 year low of $45.60 and a 1 year high of $90.00. The company has a debt-to-equity ratio of 1.34, a quick ratio of 1.54 and a current ratio of 1.54. The stock has a market cap of $9.64 billion, a P/E ratio of -92.59 and a beta of 1.64.

In other news, SVP Norman Gennaro sold 752 shares of the company’s stock in a transaction that occurred on Wednesday, February 20th. The shares were sold at an average price of $78.06, for a total value of $58,701.12. Following the transaction, the senior vice president now owns 11,073 shares in the company, valued at $864,358.38. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Adrian Mcdermott sold 446 shares of the company’s stock in a transaction that occurred on Thursday, May 16th. The stock was sold at an average price of $87.09, for a total transaction of $38,842.14. The disclosure for this sale can be found here. In the last 90 days, insiders sold 142,688 shares of company stock worth $11,698,604. Corporate insiders own 4.60% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of ZEN. TIAA CREF Investment Management LLC lifted its stake in shares of Zendesk by 5.1% in the third quarter. TIAA CREF Investment Management LLC now owns 807,879 shares of the software maker’s stock worth $57,359,000 after buying an additional 39,199 shares in the last quarter. Vanguard Group Inc lifted its stake in shares of Zendesk by 4.2% in the third quarter. Vanguard Group Inc now owns 8,930,795 shares of the software maker’s stock worth $634,087,000 after buying an additional 360,069 shares in the last quarter. State of Alaska Department of Revenue lifted its stake in shares of Zendesk by 2.0% in the fourth quarter. State of Alaska Department of Revenue now owns 13,003 shares of the software maker’s stock worth $758,000 after buying an additional 252 shares in the last quarter. Nisa Investment Advisors LLC lifted its stake in shares of Zendesk by 3,529.4% in the fourth quarter. Nisa Investment Advisors LLC now owns 3,085 shares of the software maker’s stock worth $180,000 after buying an additional 3,000 shares in the last quarter. Finally, Strs Ohio lifted its stake in shares of Zendesk by 16.5% in the fourth quarter. Strs Ohio now owns 4,528 shares of the software maker’s stock worth $264,000 after buying an additional 640 shares in the last quarter. Hedge funds and other institutional investors own 94.16% of the company’s stock.

Zendesk Company Profile

Zendesk, Inc, a software development company, provides SaaS products for organizations. Its flagship product is Zendesk Support, a system for tracking, prioritizing, and solving customer support tickets across various channels. The company also offers Zendesk Chat, a live chat software to connect with customers on Websites, applications, and mobile devices; Zendesk Talk, a cloud-based call center software; Zendesk Guide, a knowledge base that powers customer self-service and support agent productivity; Zendesk Sell, a sales force automation software to enhance productivity, processes, and pipeline visibility for sales teams; Zendesk Connect that manages customer communication across channels; and Zendesk Explore, which provides analytics for businesses to measure and enhance the customer experience.

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