The upcoming report from Guidewire Software (GWRE) is expected to reveal quarterly earnings of $0.66 per share, indicating an increase of 53.5% compared to the year-ago period. Analysts forecast revenues of $317.24 million, representing an increase of 20.7% year over year.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
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 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.
The collective assessment of analysts points to an estimated 'Revenues- Services' of $59.81 million. The estimate points to a change of +7.2% from the year-ago quarter.
Analysts forecast 'Revenues- License' to reach $39.53 million. The estimate points to a change of +5.8% from the year-ago quarter.
The consensus estimate for 'Revenue- Subscription and support' stands at $217.95 million. The estimate points to a change of +28.4% from the year-ago quarter.
Analysts predict that the 'Subscription Revenue' will reach $202.41 million. The estimate points to a change of +32.4% from the year-ago quarter.
The combined assessment of analysts suggests that 'Term License Revenue' will likely reach $38.44 million. The estimate indicates a change of +2.9% from the prior-year quarter.
Analysts' assessment points toward 'Support Revenue' reaching $15.74 million. The estimate suggests a change of -6.8% year over year.
The average prediction of analysts places 'Annual recurring revenue' at $1.05 billion. Compared to the present estimate, the company reported $874.00 million in the same quarter last year.
According to the collective judgment of analysts, 'Gross profit- Subscription and support' should come in at $153.69 million. The estimate compares to the year-ago value of $115.72 million.
Analysts expect 'Gross profit- Services' to come in at $8.99 million. Compared to the present estimate, the company reported $6.19 million in the same quarter last year.
The consensus among analysts is that 'Gross profit- License' will reach $39.93 million. The estimate is in contrast to the year-ago figure of $36.49 million.
View all Key Company Metrics for Guidewire Software here>>>
Guidewire Software shares have witnessed a change of -10.8% in the past month, in contrast to the Zacks S&P 500 composite's +0.4% 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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