Wall Street analysts expect ServiceNow (NOW) to post quarterly earnings of $4.21 per share in its upcoming report, which indicates a year-over-year increase of 13.2%. Revenues are expected to be $3.35 billion, up 19.8% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some ServiceNow metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts forecast 'Revenues- Subscription' to reach $3.26 billion. The estimate indicates a year-over-year change of +20.2%.
The collective assessment of analysts points to an estimated 'Revenues- Professional services and other' of $87.25 million. The estimate indicates a change of +6.4% from the prior-year quarter.
According to the collective judgment of analysts, 'Current Remaining Performance Obligations(cRPO) - GAAP' should come in at $11.09 billion. Compared to the current estimate, the company reported $9.36 billion in the same quarter of the previous year.
The consensus estimate for 'Remaining Performance Obligations (RPO) - GAAP' stands at $23.48 billion. Compared to the current estimate, the company reported $19.50 billion in the same quarter of the previous year.
Analysts predict that the 'Gross Profit (Non-GAAP)- Subscription' will reach $2.72 billion. The estimate compares to the year-ago value of $2.31 billion.
Analysts' assessment points toward 'Gross Profit (Non-GAAP)- Professional services and other' reaching $7.48 million. The estimate is in contrast to the year-ago figure of $5.00 million.
View all Key Company Metrics for ServiceNow here>>>
Over the past month, ServiceNow shares have recorded returns of +2.2% versus the Zacks S&P 500 composite's +1.3% change. Based on its Zacks Rank #2 (Buy), NOW will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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ServiceNow, Inc. (NOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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