The upcoming report from Guidewire Software (GWRE) is expected to reveal quarterly earnings of $0.77 per share, indicating an increase of 51% compared to the year-ago period. Analysts forecast revenues of $342.52 million, representing an increase of 18.3% year over year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain Guidewire Software metrics that are commonly tracked and forecasted by Wall Street analysts.
According to the collective judgment of analysts, 'Revenue- Services' should come in at $57.95 million. The estimate indicates a change of +20.9% from the prior-year quarter.
The consensus among analysts is that 'Revenue- License' will reach $55.73 million. The estimate points to a change of -12.5% from the year-ago quarter.
Analysts forecast 'Revenue- Subscription and support' to reach $229.04 million. The estimate indicates a change of +28.8% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Subscription and support- Subscription' will reach $214.80 million. The estimate indicates a year-over-year change of +32.9%.
The combined assessment of analysts suggests that 'Revenue- License- Term license' will likely reach $55.22 million. The estimate points to a change of -13.3% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Subscription and support- Support' should arrive at $14.07 million. The estimate suggests a change of -13.1% year over year.
Analysts' assessment points toward 'Annual recurring revenue' reaching $1.11 billion. The estimate is in contrast to the year-ago figure of $918.10 million.
Analysts predict that the 'Gross profit- Subscription and support' will reach $163.97 million. The estimate compares to the year-ago value of $118.74 million.
The collective assessment of analysts points to an estimated 'Gross profit- License' of $54.39 million. Compared to the present estimate, the company reported $62.75 million in the same quarter last year.
View all Key Company Metrics for Guidewire Software here>>>Shares of Guidewire Software have experienced a change of +3.2% in the past month compared to the -1.3% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), GWRE is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
