Shares of cloud-based internet security company ZScaler (ZS - Get Report) plunged on Wednesday, extending losses from Tuesday's after-hours session, after the company received a price-target cut from analysts at Wedbush Securities in the wake of disappointing full-year earnings guidance.
Shares of ZScaler fell sharply in after-hours trading on Tuesday after the company posted fiscal fourth-quarter results that beat analysts' forecasts, but said it expects to post lower-than-anticipated adjusted earnings for next fiscal year.
ZScaler said it now expects to post adjusted earnings of between 12 cents and 15 cents a share for the fiscal year ending July 31, 2020, on revenue of between $395 million and $405 million. Analysts had been looking for adjusted earnings of 19 cents a share on revenue of $403 million.
That prompted research analysts at Wedbush to lower their price target to $80 from $90, though the brokerage kept its outperform rating on the company's stock.
Shares of ZScaler were down 21.15% at $48.57 in trading on the Nasdaq Stock Market. The stock has traded in a 52-week range of between $89.54 and $30.72.