For the quarter ending April 2024, Guidewire Software (GWRE) reported revenue of $240.68 million, up 16% from the same period last year. Earnings per share came in at $0.26, compared to -$0.08 in the same quarter last year.
Reported revenue represents a surprise of +3.98% versus the Zacks Consensus Estimate of $231.46 million. Since the consensus EPS estimate was $0.13, the EPS surprise was +100.00%.
While investors look closely at changes in sales and profits year after year and how they compare to Wall Street expectations to determine their next move, some key metrics always provide a more accurate picture of a company’s financial health.
Because these measures play a crucial role in driving top- and bottom-line numbers, comparing them to a year ago’s numbers and what analysts estimate about them can help investors better predict a stock’s price movement.
Here’s how Guidewire Software performed in the just-reported quarter in terms of the metrics most frequently monitored and projected by Wall Street analysts:
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Annual recurring turnover: $828 million versus the average four analyst estimate of $818 million.
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Revenue – Subscription and support: $137.97 million versus the average estimate of six analysts of $131.34 million.
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Revenue- License: $56.21 million versus the average five-analyst estimate of $56.08 million.
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Revenue – Services: $46.50 million compared to the average estimate of $41.49 million from five analysts.
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Gross Profit – Subscription and Support: $86.79 million compared to the average estimate of $84.58 million from four analysts.
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Gross profit – Services: $0.07 million compared to the average estimate of $1.04 million from four analysts.
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Gross Profit – License: $55.37 million versus $54.55 million average estimate by four analysts.
View all key business metrics for Guidewire software here>>>
Shares of Guidewire Software are up -6% over the past month, compared to the Zacks S&P 500 composite’s +3.2%. The stock currently carries a Zacks Rank of #3 (Hold), indicating it could perform in line with the broader market in the near term.
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