Zendesk, Inc. (NYSE:ZEN) Expected to Post Earnings of $0.15 Per Share

Wall Street analysts expect Zendesk, Inc. (NYSE:ZEN) to report $0.15 earnings per share for the current fiscal quarter, according to Zacks Investment Research. Five analysts have provided estimates for Zendesk’s earnings. The highest EPS estimate is $0.18 and the lowest is $0.13. Zendesk posted earnings per share of $0.14 in the same quarter last year, which indicates a positive year-over-year growth rate of 7.1%. The business is expected to report its next quarterly earnings report 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 financial year, analysts forecast that the business 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 sell-side analysts that cover Zendesk.

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

ZEN has been the subject of a number of research reports. Zacks Investment Research raised shares of Zendesk from a “sell” rating to a “hold” rating in a report on Thursday, April 8th. Wolfe Research began coverage on Zendesk in a report on Wednesday, April 28th. They issued an “outperform” rating and a $180.00 price target for the company. UBS Group raised Zendesk from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $171.00 to $190.00 in a research note on Thursday, May 27th. Stifel Nicolaus initiated coverage on Zendesk in a research note on Thursday, April 8th. They issued a “buy” rating for the company. Finally, Piper Sandler boosted their price target 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. Two equities research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average target price of $159.27.

In related news, CEO Mikkel Svane sold 43,875 shares of Zendesk stock in a transaction that occurred on Monday, March 15th. The shares were sold at an average price of $133.21, for a total value of $5,844,588.75. Following the completion of the sale, the chief executive officer now owns 836,063 shares in the company, valued at approximately $111,371,952.23. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Inamarie Johnson sold 1,561 shares of the business’s stock in a transaction that occurred on Tuesday, May 11th. The shares were sold at an average price of $128.28, for a total value of $200,245.08. Following the completion of the sale, the insider now directly owns 23,549 shares in the company, valued at approximately $3,020,865.72. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 198,615 shares of company stock valued at $27,538,849. 3.60% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. FIL Ltd purchased a new stake in shares of Zendesk in the 1st quarter valued at $28,000. Manchester Financial Inc. boosted its holdings in Zendesk by 1,428.6% during the 1st quarter. Manchester Financial Inc. now owns 214 shares of the software maker’s stock valued at $28,000 after acquiring an additional 200 shares during the period. Bessemer Group Inc. acquired a new position in Zendesk in the 1st quarter valued at about $34,000. KB Financial Partners LLC purchased a new stake in Zendesk during the first quarter worth about $41,000. Finally, Perigon Wealth Management LLC acquired a new stake in shares of Zendesk during the fourth quarter worth about $51,000. Institutional investors and hedge funds own 95.34% of the company’s stock.

NYSE ZEN traded up $0.10 during mid-day trading on Thursday, hitting $136.60. The stock had a trading volume of 856,258 shares, compared to its average volume of 1,169,051. The stock’s 50 day moving average is $140.35. The company has a debt-to-equity ratio of 2.20, a current ratio of 1.75 and a quick ratio of 1.75. The company has a market capitalization of $16.21 billion, a PE ratio of -70.96 and a beta of 1.22. Zendesk has a twelve month low of $77.75 and a twelve month high of $166.60.

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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