Zacks: Analysts Expect Zendesk Inc (NYSE:ZEN) Will Post Earnings of $0.06 Per Share

Equities research analysts predict that Zendesk Inc (NYSE:ZEN) will post $0.06 earnings per share (EPS) for the current quarter, Zacks Investment Research reports. Nine analysts have issued estimates for Zendesk’s earnings. The lowest EPS estimate is $0.03 and the highest is $0.07. Zendesk posted earnings per share of $0.09 in the same quarter last year, which would indicate a negative year-over-year growth rate of 33.3%. The business is expected to issue its next quarterly earnings report on Tuesday, October 29th.

On average, analysts expect that Zendesk will report full year earnings of $0.26 per share for the current fiscal year, with EPS estimates ranging from $0.21 to $0.30. For the next financial year, analysts anticipate that the company will report earnings of $0.56 per share, with EPS estimates ranging from $0.38 to $0.72. Zacks’ EPS averages are a mean average based on a survey of research analysts that cover Zendesk.

Zendesk (NYSE:ZEN) last announced its quarterly earnings data on Tuesday, July 30th. The software maker reported $0.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.33. Zendesk had a negative return on equity of 27.44% and a negative net margin of 23.70%. The company had revenue of $194.58 million for the quarter, compared to analysts’ expectations of $192.47 million. During the same quarter in the prior year, the business posted $0.03 EPS. The business’s revenue was up 37.1% compared to the same quarter last year.

ZEN has been the topic of a number of analyst reports. Canaccord Genuity upped their price objective on Zendesk from $100.00 to $105.00 and gave the stock a “buy” rating in a research note on Wednesday, July 31st. Zacks Investment Research cut Zendesk from a “buy” rating to a “hold” rating in a research note on Saturday, August 3rd. UBS Group set a $98.00 price objective on Zendesk and gave the stock a “hold” rating in a research note on Wednesday, July 31st. JMP Securities upped their price objective on Zendesk from $82.00 to $100.00 and gave the stock a “market outperform” rating in a research note on Wednesday, May 1st. Finally, Wedbush reiterated an “outperform” rating and set a $103.00 price objective (up previously from $95.00) on shares of Zendesk in a research note on Thursday, May 23rd. Four equities research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the stock. Zendesk presently has a consensus rating of “Buy” and a consensus price target of $97.29.

Shares of Zendesk stock traded up $1.04 on Friday, reaching $81.27. 177,156 shares of the company were exchanged, compared to its average volume of 2,415,496. Zendesk has a one year low of $45.60 and a one year high of $94.89. The company has a market capitalization of $8.54 billion, a price-to-earnings ratio of -85.55 and a beta of 1.51. The company has a current ratio of 0.67, a quick ratio of 0.67 and a debt-to-equity ratio of 0.23. The company has a 50-day moving average of $86.06 and a 200 day moving average of $84.06.

In other Zendesk news, SVP John Geschke sold 915 shares of the company’s stock in a transaction on Monday, June 10th. The stock was sold at an average price of $92.48, for a total value of $84,619.20. Following the transaction, the senior vice president now directly owns 20,854 shares of the company’s stock, valued at approximately $1,928,577.92. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Norman Gennaro sold 752 shares of the company’s stock in a transaction on Wednesday, June 19th. The shares were sold at an average price of $88.42, for a total value of $66,491.84. Following the completion of the transaction, the senior vice president now directly owns 14,000 shares in the company, valued at $1,237,880. The disclosure for this sale can be found here. In the last 90 days, insiders sold 137,637 shares of company stock worth $11,171,594. 4.60% of the stock is owned by company insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of ZEN. Price T Rowe Associates Inc. MD grew its holdings in Zendesk by 75.2% in the 2nd quarter. Price T Rowe Associates Inc. MD now owns 9,133,023 shares of the software maker’s stock valued at $813,113,000 after buying an additional 3,920,837 shares in the last quarter. Nuveen Asset Management LLC acquired a new position in Zendesk in the 2nd quarter valued at $67,967,000. CIBC Private Wealth Group LLC acquired a new position in Zendesk in the 1st quarter valued at $54,818,000. Neuberger Berman Group LLC grew its holdings in Zendesk by 982.4% in the 1st quarter. Neuberger Berman Group LLC now owns 469,810 shares of the software maker’s stock valued at $39,934,000 after buying an additional 426,405 shares in the last quarter. Finally, Holocene Advisors LP grew its holdings in Zendesk by 252.2% in the 2nd quarter. Holocene Advisors LP now owns 441,306 shares of the software maker’s stock valued at $39,289,000 after buying an additional 315,993 shares in the last quarter. 93.47% of the stock is currently owned by hedge funds and other institutional investors.

About Zendesk

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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Earnings History and Estimates for Zendesk (NYSE:ZEN)

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