Zendesk Inc (NYSE:ZEN) to Post Q2 2019 Earnings of ($0.28) Per Share, Wedbush Forecasts

Zendesk Inc (NYSE:ZEN) – Equities research analysts at Wedbush decreased their Q2 2019 earnings estimates for shares of Zendesk in a research note issued on Wednesday, May 1st, according to Zacks Investment Research. Wedbush analyst S. Koenig now expects that the software maker will earn ($0.28) per share for the quarter, down from their prior estimate of ($0.24). Wedbush has a “Outperform” rating and a $93.00 price target on the stock. Wedbush also issued estimates for Zendesk’s Q3 2019 earnings at ($0.25) EPS, Q4 2019 earnings at ($0.26) EPS, FY2019 earnings at ($1.04) EPS, Q1 2020 earnings at ($0.28) EPS, Q2 2020 earnings at ($0.26) EPS, Q3 2020 earnings at ($0.21) EPS, Q4 2020 earnings at ($0.21) EPS and FY2020 earnings at ($0.95) EPS.

A number of other brokerages have also weighed in on ZEN. JMP Securities boosted their price objective on shares of Zendesk from $82.00 to $100.00 and gave the stock a “market outperform” rating in a report on Wednesday, May 1st. Jefferies Financial Group boosted their price objective on shares of Zendesk from $90.00 to $102.00 and gave the stock a “market perform” rating in a report on Wednesday, May 1st. Wells Fargo & Co boosted their price objective on shares of Zendesk from $90.00 to $115.00 and gave the stock an “outperform” rating in a report on Wednesday, May 1st. KeyCorp boosted their price objective on shares of Zendesk from $92.00 to $102.00 and gave the stock an “overweight” rating in a report on Wednesday, May 1st. Finally, Zacks Investment Research lowered shares of Zendesk from a “buy” rating to a “hold” rating and set a $98.00 price objective for the company. in a report on Friday, May 3rd. Five research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. Zendesk has an average rating of “Buy” and a consensus target price of $90.93.

Shares of NYSE ZEN opened at $85.49 on Monday. Zendesk has a twelve month low of $45.60 and a twelve month high of $89.07. The company has a market capitalization of $9.56 billion, a P/E ratio of -89.99 and a beta of 1.64. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34.

Zendesk (NYSE:ZEN) last announced its quarterly earnings data on Tuesday, April 30th. The software maker reported ($0.28) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.28). Zendesk had a negative net margin of 22.52% and a negative return on equity of 25.37%. The company had revenue of $181.48 million during the quarter, compared to analyst estimates of $179.53 million. During the same period in the previous year, the business earned $0.02 EPS. The firm’s revenue for the quarter was up 39.8% on a year-over-year basis.

In other news, SVP John Geschke sold 2,500 shares of the business’s stock in a transaction on Friday, May 10th. The shares were sold at an average price of $87.60, for a total transaction of $219,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Adrian Mcdermott sold 6,213 shares of the business’s stock in a transaction on Monday, May 6th. The shares were sold at an average price of $85.11, for a total transaction of $528,788.43. Following the sale, the insider now directly owns 87,677 shares of the company’s stock, valued at approximately $7,462,189.47. The disclosure for this sale can be found here. In the last ninety days, insiders sold 91,787 shares of company stock valued at $7,332,636. 4.60% of the stock is currently owned by insiders.

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc grew its position in shares of Zendesk by 4.2% during the 3rd quarter. Vanguard Group Inc now owns 8,930,795 shares of the software maker’s stock valued at $634,087,000 after acquiring an additional 360,069 shares during the period. Westfield Capital Management Co. LP grew its position in shares of Zendesk by 97.9% during the 4th quarter. Westfield Capital Management Co. LP now owns 1,498,026 shares of the software maker’s stock valued at $87,440,000 after acquiring an additional 741,013 shares during the period. Polar Capital LLP grew its position in shares of Zendesk by 30.8% during the 4th quarter. Polar Capital LLP now owns 1,379,322 shares of the software maker’s stock valued at $80,511,000 after acquiring an additional 325,132 shares during the period. 1832 Asset Management L.P. grew its position in shares of Zendesk by 80.6% during the 4th quarter. 1832 Asset Management L.P. now owns 1,317,500 shares of the software maker’s stock valued at $75,062,000 after acquiring an additional 587,800 shares during the period. Finally, Geode Capital Management LLC grew its position in shares of Zendesk by 6.0% during the 1st quarter. Geode Capital Management LLC now owns 1,044,984 shares of the software maker’s stock valued at $88,822,000 after acquiring an additional 58,917 shares during the period. 95.26% of the stock is owned by hedge funds and other institutional investors.

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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