Analysts Anticipate Zendesk Inc (ZEN) to Post -$0.03 EPS

Analysts forecast that Zendesk Inc (NYSE:ZEN) will report earnings of ($0.03) per share for the current quarter, according to Zacks. Zero analysts have issued estimates for Zendesk’s earnings, with estimates ranging from ($0.07) to $0.02. Zendesk reported earnings of ($0.05) per share in the same quarter last year, which indicates a positive year-over-year growth rate of 40%. The company is expected to announce its next earnings results on Thursday, May 3rd.

According to Zacks, analysts expect that Zendesk will report full year earnings of ($0.04) per share for the current financial year, with EPS estimates ranging from ($0.12) to $0.05. For the next fiscal year, analysts expect that the business will post earnings of $0.19 per share, with EPS estimates ranging from ($0.04) to $0.34. Zacks Investment Research’s EPS averages are an average based on a survey of sell-side research analysts that that provide coverage for Zendesk.

Zendesk (NYSE:ZEN) last issued its earnings results on Tuesday, February 6th. The software maker reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.03. Zendesk had a negative net margin of 25.70% and a negative return on equity of 32.88%. The business had revenue of $123.43 million for the quarter, compared to analyst estimates of $119.68 million. During the same period in the previous year, the business earned ($0.04) EPS. The firm’s revenue was up 39.3% on a year-over-year basis.

ZEN has been the topic of several recent research reports. Cowen lifted their target price on shares of Zendesk from $39.00 to $46.00 and gave the company an “outperform” rating in a research report on Wednesday. Stifel Nicolaus reiterated a “neutral” rating on shares of Zendesk in a research report on Friday, November 3rd. Morgan Stanley lifted their target price on shares of Zendesk from $35.00 to $38.00 and gave the company an “overweight” rating in a research report on Thursday, November 2nd. Stephens upgraded shares of Zendesk from an “underweight” rating to an “equal weight” rating in a research report on Wednesday. Finally, KeyCorp boosted their price target on shares of Zendesk from $42.00 to $43.00 and gave the company an “overweight” rating in a research report on Wednesday. One research analyst has rated the stock with a sell rating, five have issued a hold rating and thirteen have issued a buy rating to the company. The company presently has an average rating of “Buy” and a consensus price target of $40.31.

Shares of Zendesk (ZEN) traded down $1.97 during trading on Thursday, hitting $38.50. 1,720,575 shares of the stock traded hands, compared to its average volume of 991,684. Zendesk has a 1-year low of $24.49 and a 1-year high of $42.35. The firm has a market cap of $3,900.92, a price-to-earnings ratio of -34.68 and a beta of 1.87.

In related news, Chairman Mikkel Svane sold 50,000 shares of the business’s stock in a transaction that occurred on Wednesday, November 15th. The shares were sold at an average price of $34.31, for a total transaction of $1,715,500.00. Following the completion of the sale, the chairman now directly owns 1,734,891 shares of the company’s stock, valued at $59,524,110.21. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP John Geschke sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 16th. The stock was sold at an average price of $37.27, for a total transaction of $372,700.00. Following the sale, the senior vice president now directly owns 16,795 shares of the company’s stock, valued at $625,949.65. The disclosure for this sale can be found here. Over the last three months, insiders have sold 101,426 shares of company stock valued at $3,543,308. 5.30% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of ZEN. Wasatch Advisors Inc. grew its holdings in Zendesk by 26.5% during the second quarter. Wasatch Advisors Inc. now owns 3,919,479 shares of the software maker’s stock valued at $108,883,000 after purchasing an additional 820,465 shares during the period. Ameriprise Financial Inc. grew its holdings in Zendesk by 755.0% during the third quarter. Ameriprise Financial Inc. now owns 827,334 shares of the software maker’s stock valued at $24,083,000 after purchasing an additional 730,570 shares during the period. Vanguard Group Inc. grew its holdings in Zendesk by 10.9% during the second quarter. Vanguard Group Inc. now owns 7,365,549 shares of the software maker’s stock valued at $204,615,000 after purchasing an additional 721,652 shares during the period. Crosslink Capital Inc. grew its holdings in Zendesk by 934.6% during the second quarter. Crosslink Capital Inc. now owns 788,714 shares of the software maker’s stock valued at $21,910,000 after purchasing an additional 712,480 shares during the period. Finally, State Street Corp grew its holdings in Zendesk by 22.6% during the second quarter. State Street Corp now owns 1,813,976 shares of the software maker’s stock valued at $50,395,000 after purchasing an additional 334,769 shares during the period. Hedge funds and other institutional investors own 93.94% of the company’s stock.

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Zendesk Company Profile

Zendesk, Inc (Zendesk) is a software development company. The Zendesk family of products is built to work together to help organizations understand and manage customer relationships. All Zendesk products share a common interface and are being developed to support a shared services infrastructure and common customer data platform.

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