Wall Street analysts forecast that Guidewire Software (GWRE) will report quarterly earnings of $0.62 per share in its upcoming release, pointing to no change from the year-ago quarter. It is anticipated that revenues will amount to $337.15 million, exhibiting an increase of 15.7% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Guidewire Software metrics that are commonly monitored and projected by Wall Street analysts.
Analysts predict that the 'Revenue- Subscription and support' will reach $194.68 million. The estimate suggests a change of +28.2% year over year.
The collective assessment of analysts points to an estimated 'Subscription Revenue' of $178.30 million. The estimate points to a change of +32.8% from the year-ago quarter.
Analysts' assessment points toward 'Revenues- License' reaching $86.17 million. The estimate indicates a change of -3% from the prior-year quarter.
Analysts forecast 'Revenues- Services' to reach $56.81 million. The estimate points to a change of +11.8% from the year-ago quarter.
According to the collective judgment of analysts, 'Support Revenue' should come in at $15.79 million. The estimate indicates a year-over-year change of -10%.
The average prediction of analysts places 'Term License Revenue' at $85.80 million. The estimate suggests a change of -3.4% year over year.
It is projected by analysts that the 'Annual recurring revenue' will reach $1.02 billion. Compared to the current estimate, the company reported $872.00 million in the same quarter of the previous year.
The consensus estimate for 'Gross profit- Subscription and support' stands at $131.32 million. The estimate is in contrast to the year-ago figure of $96.23 million.
Analysts expect 'Gross profit- License' to come in at $84.37 million. Compared to the current estimate, the company reported $87.86 million in the same quarter of the previous year.
View all Key Company Metrics for Guidewire Software here>>>
Guidewire Software shares have witnessed a change of -3.3% in the past month, in contrast to the Zacks S&P 500 composite's +1.9% move. With a Zacks Rank #3 (Hold), GWRE is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Guidewire Software, Inc. (GWRE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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