Zacks: Analysts Expect Zendesk Inc (ZEN) to Post $0.03 EPS

Brokerages forecast that Zendesk Inc (NYSE:ZEN) will report earnings per share (EPS) of $0.03 for the current quarter, Zacks reports. Ten analysts have issued estimates for Zendesk’s earnings, with the lowest EPS estimate coming in at $0.00 and the highest estimate coming in at $0.05. Zendesk posted earnings per share of $0.02 in the same quarter last year, which indicates a positive year over year growth rate of 50%. The company is expected to issue its next quarterly earnings results on Tuesday, May 7th.

According to Zacks, analysts expect that Zendesk will report full year earnings of $0.29 per share for the current financial year, with EPS estimates ranging from $0.18 to $0.36. For the next fiscal year, analysts forecast that the company will post earnings of $0.67 per share, with EPS estimates ranging from $0.45 to $0.96. Zacks’ earnings per share calculations are a mean average based on a survey of sell-side research analysts that cover Zendesk.

Zendesk (NYSE:ZEN) last issued its quarterly earnings results on Tuesday, February 5th. The software maker reported $0.10 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.28) by $0.38. The business had revenue of $172.25 million for the quarter, compared to analysts’ expectations of $165.56 million. Zendesk had a negative net margin of 21.89% and a negative return on equity of 24.19%. The company’s revenue was up 41.3% compared to the same quarter last year. During the same quarter last year, the company posted ($0.01) EPS.

Several brokerages have recently weighed in on ZEN. Zacks Investment Research upgraded shares of Zendesk from a “hold” rating to a “buy” rating and set a $65.00 price target on the stock in a research note on Sunday, January 6th. Wedbush began coverage on shares of Zendesk in a research report on Thursday, December 6th. They set an “outperform” rating and a $71.00 price objective on the stock. Canaccord Genuity raised their price objective on shares of Zendesk from $65.00 to $85.00 and gave the company a “buy” rating in a research report on Wednesday, February 6th. Craig Hallum raised their price objective on shares of Zendesk from $68.00 to $84.00 and gave the company a “buy” rating in a research report on Wednesday, February 6th. Finally, Cowen raised their price objective on shares of Zendesk from $72.00 to $88.00 and gave the company an “outperform” rating in a research report on Wednesday, February 6th. Three analysts have rated the stock with a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the stock. Zendesk currently has an average rating of “Buy” and an average target price of $77.44.

Shares of Zendesk stock traded down $0.36 on Friday, hitting $82.60. 1,955,086 shares of the company’s stock were exchanged, compared to its average volume of 2,045,276. The stock has a market capitalization of $8.95 billion, a PE ratio of -86.95 and a beta of 1.66. Zendesk has a 1 year low of $44.42 and a 1 year high of $83.83. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.67 and a quick ratio of 1.67.

In other Zendesk news, CMO Jeffrey J. Titterton sold 472 shares of Zendesk stock in a transaction on Thursday, January 17th. The shares were sold at an average price of $63.11, for a total value of $29,787.92. Following the sale, the chief marketing officer now directly owns 12,775 shares in the company, valued at approximately $806,230.25. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director L Michelle Wilson sold 19,586 shares of Zendesk stock in a transaction on Tuesday, January 8th. The shares were sold at an average price of $63.29, for a total transaction of $1,239,597.94. Following the completion of the sale, the director now owns 157,847 shares in the company, valued at $9,990,136.63. The disclosure for this sale can be found here. Insiders have sold a total of 110,302 shares of company stock worth $8,142,103 over the last 90 days. Insiders own 4.70% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the business. Flinton Capital Management LLC bought a new stake in Zendesk in the 4th quarter valued at $30,000. Intercontinental Wealth Advisors LLC bought a new stake in Zendesk in the 4th quarter valued at $34,000. Ipswich Investment Management Co. Inc. bought a new stake in Zendesk in the 4th quarter valued at $41,000. Mondrian Capital Management LLC bought a new stake in Zendesk in the 4th quarter valued at $58,000. Finally, Penserra Capital Management LLC increased its holdings in Zendesk by 304.5% in the 4th quarter. Penserra Capital Management LLC now owns 1,440 shares of the software maker’s stock valued at $84,000 after acquiring an additional 1,084 shares during the last quarter. Institutional investors own 95.69% of the company’s stock.

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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