Wall Street analysts forecast that ServiceNow (NOW) will report quarterly earnings of $0.87 per share in its upcoming release, pointing to a year-over-year increase of 19.2%. It is anticipated that revenues will amount to $3.52 billion, exhibiting an increase of 19.2% 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.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance 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.
Bearing this in mind, let's now explore the average estimates of specific ServiceNow metrics that are commonly monitored and projected by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Revenues- Subscription' of $3.42 billion. The estimate indicates a year-over-year change of +19.5%.
Analysts' assessment points toward 'Revenues- Professional services and other' reaching $99.33 million. The estimate indicates a change of +9.2% from the prior-year quarter.
Based on the collective assessment of analysts, 'Current Remaining Performance Obligations(cRPO) - GAAP' should arrive at $12.56 billion. The estimate compares to the year-ago value of $10.27 billion.
The consensus estimate for 'Remaining Performance Obligations (RPO) - GAAP' stands at $27.59 billion. Compared to the present estimate, the company reported $22.30 billion in the same quarter last year.
According to the collective judgment of analysts, 'Gross Profit (Non-GAAP)- Subscription' should come in at $2.85 billion. Compared to the current estimate, the company reported $2.42 billion in the same quarter of the previous year.
The consensus among analysts is that 'Gross Profit (Non-GAAP)- Professional services and other' will reach $10.21 million. The estimate is in contrast to the year-ago figure of $7.00 million.
View all Key Company Metrics for ServiceNow here>>>
ServiceNow shares have witnessed a change of -15.8% in the past month, in contrast to the Zacks S&P 500 composite's +0.6% move. With a Zacks Rank #3 (Hold), NOW 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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ServiceNow, Inc. (NOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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