Brokerages Anticipate Zendesk, Inc. (NYSE:ZEN) Will Post Earnings of $0.15 Per Share

Equities analysts expect Zendesk, Inc. (NYSE:ZEN) to announce $0.15 earnings per share for the current quarter, according to Zacks Investment Research. Five analysts have provided estimates for Zendesk’s earnings, with the lowest EPS estimate coming in at $0.13 and the highest estimate coming in at $0.18. Zendesk reported earnings of $0.14 per share during the same quarter last year, which would indicate a positive year over year growth rate of 7.1%. The firm is expected to announce its next quarterly earnings results on Thursday, July 29th.

On average, analysts expect that Zendesk will report full year earnings of $0.68 per share for the current financial year, with EPS estimates ranging from $0.61 to $0.78. For the next year, analysts expect that the company will report earnings of $1.00 per share, with EPS estimates ranging from $0.77 to $1.21. Zacks Investment Research’s earnings per share calculations are an average based on a survey of research analysts that that provide coverage for Zendesk.

Zendesk (NYSE:ZEN) last announced its quarterly earnings results on Thursday, April 29th. The software maker reported ($0.29) EPS for the quarter, missing the consensus estimate of ($0.23) by ($0.06). Zendesk had a negative net margin of 20.58% and a negative return on equity of 27.25%. The firm had revenue of $298.05 million during the quarter, compared to analyst estimates of $294.50 million.

A number of equities analysts recently issued reports on the stock. Piper Sandler increased their target price on shares of Zendesk from $180.00 to $186.00 and gave the company an “overweight” rating in a research report on Friday, April 30th. Stifel Nicolaus assumed coverage on shares of Zendesk in a research note on Thursday, April 8th. They set a “buy” rating on the stock. Wolfe Research assumed coverage on Zendesk in a research note on Wednesday, April 28th. They set an “outperform” rating and a $180.00 price target for the company. UBS Group upgraded Zendesk from a “neutral” rating to a “buy” rating and lifted their price target for the company from $171.00 to $190.00 in a research report on Thursday, May 27th. Finally, Zacks Investment Research upgraded Zendesk from a “sell” rating to a “hold” rating in a report on Thursday, April 8th. Two investment analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. The company currently has a consensus rating of “Buy” and an average price target of $159.27.

In related news, CEO Mikkel Svane sold 43,875 shares of the company’s stock in a transaction on Monday, March 15th. The stock was sold at an average price of $133.21, for a total transaction of $5,844,588.75. Following the transaction, the chief executive officer now directly owns 836,063 shares of the company’s stock, valued at $111,371,952.23. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Norman Gennaro sold 5,000 shares of the stock in a transaction dated Monday, March 15th. The stock was sold at an average price of $133.82, for a total value of $669,100.00. Following the completion of the sale, the insider now directly owns 26,945 shares of the company’s stock, valued at $3,605,779.90. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 198,615 shares of company stock worth $27,538,849. Corporate insiders own 3.60% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of ZEN. Price T Rowe Associates Inc. MD boosted its holdings in shares of Zendesk by 15.2% during the first quarter. Price T Rowe Associates Inc. MD now owns 9,089,408 shares of the software maker’s stock worth $1,205,437,000 after purchasing an additional 1,197,247 shares during the period. BlackRock Inc. boosted its stake in shares of Zendesk by 8.3% during the 1st quarter. BlackRock Inc. now owns 7,901,535 shares of the software maker’s stock valued at $1,047,903,000 after buying an additional 607,050 shares during the period. Neuberger Berman Group LLC grew its holdings in shares of Zendesk by 20.1% during the 1st quarter. Neuberger Berman Group LLC now owns 2,338,527 shares of the software maker’s stock valued at $309,671,000 after acquiring an additional 392,044 shares in the last quarter. Alliancebernstein L.P. increased its stake in shares of Zendesk by 13.4% in the first quarter. Alliancebernstein L.P. now owns 2,260,066 shares of the software maker’s stock worth $299,730,000 after acquiring an additional 267,460 shares during the last quarter. Finally, Amundi Asset Management US Inc. raised its holdings in shares of Zendesk by 16.3% during the first quarter. Amundi Asset Management US Inc. now owns 1,959,211 shares of the software maker’s stock worth $259,829,000 after acquiring an additional 274,617 shares in the last quarter. Institutional investors own 95.34% of the company’s stock.

ZEN stock traded up $0.10 during trading on Thursday, reaching $136.60. 856,258 shares of the company’s stock were exchanged, compared to its average volume of 1,169,051. The stock has a market capitalization of $16.21 billion, a price-to-earnings ratio of -70.96 and a beta of 1.22. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 2.20. Zendesk has a 1-year low of $77.75 and a 1-year high of $166.60. The company has a fifty day simple moving average of $140.35.

About Zendesk

Zendesk, Inc, a software development company, provides software as a service solutions for organizations in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. Its flagship product is Zendesk Support, a system for tracking, prioritizing, and solving customer support tickets across various channels.

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