Zendesk, Inc. (NYSE:ZEN) Expected to Announce Earnings of $0.16 Per Share

Wall Street analysts expect Zendesk, Inc. (NYSE:ZEN) to report earnings of $0.16 per share for the current quarter, according to Zacks Investment Research. Five analysts have issued estimates for Zendesk’s earnings, with estimates ranging from $0.14 to $0.19. Zendesk posted earnings of $0.17 per share during the same quarter last year, which suggests a negative year-over-year growth rate of 5.9%. The company is scheduled to announce its next earnings report on Thursday, November 4th.

According to Zacks, analysts expect that Zendesk will report full year earnings of $0.65 per share for the current fiscal year, with EPS estimates ranging from $0.61 to $0.71. For the next financial year, analysts forecast that the company will post earnings of $0.97 per share, with EPS estimates ranging from $0.78 to $1.21. Zacks Investment Research’s earnings per share calculations are a mean average based on a survey of sell-side analysts that cover Zendesk.

Zendesk (NYSE:ZEN) last announced its quarterly earnings results on Thursday, July 29th. The software maker reported $0.13 EPS for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.03). Zendesk had a negative return on equity of 31.88% and a negative net margin of 18.77%. The company had revenue of $318.22 million during the quarter, compared to the consensus estimate of $320.17 million.

A number of analysts have recently commented on the stock. UBS Group upgraded shares of Zendesk from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $171.00 to $190.00 in a research note on Thursday, May 27th. Piper Sandler reduced their price target on shares of Zendesk from $186.00 to $175.00 and set an “overweight” rating for the company in a research note on Friday, July 30th. Zacks Investment Research lowered shares of Zendesk from a “hold” rating to a “sell” rating in a research note on Thursday, August 5th. Finally, Guggenheim reissued a “buy” rating on shares of Zendesk in a report on Friday, August 27th. One analyst has rated the stock with a sell rating and twelve have given a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $171.00.

In other Zendesk news, insider John Geschke sold 3,000 shares of Zendesk stock in a transaction that occurred on Tuesday, July 6th. The shares were sold at an average price of $147.96, for a total transaction of $443,880.00. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Mikkel Svane sold 43,875 shares of Zendesk stock in a transaction that occurred on Thursday, July 15th. The shares were sold at an average price of $137.15, for a total transaction of $6,017,456.25. The disclosure for this sale can be found here. Insiders have sold 117,031 shares of company stock worth $15,100,303 in the last ninety days. Insiders own 3.60% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in the company. Parametric Portfolio Associates LLC lifted its holdings in shares of Zendesk by 9.0% in the second quarter. Parametric Portfolio Associates LLC now owns 171,288 shares of the software maker’s stock worth $24,724,000 after buying an additional 14,072 shares in the last quarter. Y Intercept Hong Kong Ltd purchased a new position in shares of Zendesk in the second quarter worth $816,000. Comerica Bank lifted its holdings in shares of Zendesk by 15.9% in the second quarter. Comerica Bank now owns 45,466 shares of the software maker’s stock worth $5,456,000 after buying an additional 6,223 shares in the last quarter. Marshall Wace LLP purchased a new position in shares of Zendesk in the second quarter worth $3,004,000. Finally, Marshall Wace North America L.P. purchased a new position in shares of Zendesk in the second quarter worth $3,147,000. 94.16% of the stock is currently owned by hedge funds and other institutional investors.

Shares of ZEN stock traded up $3.47 during trading hours on Thursday, reaching $125.48. The company had a trading volume of 2,307,547 shares, compared to its average volume of 1,201,529. The business has a fifty day moving average price of $129.49 and a 200-day moving average price of $135.99. Zendesk has a one year low of $93.05 and a one year high of $166.60. The firm has a market cap of $15.06 billion, a PE ratio of -67.46 and a beta of 1.19. The company has a debt-to-equity ratio of 2.06, a quick ratio of 1.68 and a current ratio of 1.68.

About Zendesk

Zendesk, Inc engages in the provision of customer service platform which enables companies to provide customer support. Its products and services include support; guide; chat; talk; message; inbox team email; explore; connect plus outbound; integrations and apps; embeddables; insights and analytics; and products update.

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