Guidewire Software, Inc GWRE is expected to report first-quarter fiscal 2025 results on December 5.
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Management expects revenue between $251 and $257 million. The Zacks Consensus Estimate is pegged at $254.3 million, indicating an increase of 22.6% from the prior-year quarter.
The consensus estimate for operating income is set at 30 cents, unchanged over the past 60 days. GWRE reported break-even profits in the year-ago period.
GWRE has an average fourth-quarter earnings surprise of 84.6%. GWRE shares are up 86.1% in the past year, compared to the subsector’s growth of 23.4%.
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Guidewire’s performance has likely benefited from continued momentum in Guidewire Cloud. Solid deal volume at all levels and increasing sales activity, especially in Asia Pacific and EMEA, are other tailwinds. The company has expanded its network of partners (including SIs and solution providers) to drive sustainable operations and greater value from the platform.
Guidewire’s InsuranceSuite Cloud consists of three primary applications, namely PolicyCenter Cloud, BillingCenter Cloud and ClaimCenter Cloud. In the last reported quarter, it won 16 deals, bringing its total number of cloud wins for the year to 42. Of these deals, 13 were for InsuranceSuite Cloud in the quarter, bringing the total number of deals for the segment to 37 for the fiscal year. It also won three InsuranceNow deals in the fourth quarter.
The company’s focus on enhancing the Guidewire Cloud platform with new capabilities is expected to have driven sales of subscription-based solutions. Management expects subscription and support revenue of $167 million and services revenue of $50 million.
Guidewire Software, Inc. price-eps-surprise | Quote from Guidewire Software, Inc
GWRE’s efforts to increase cloud operations efficiency and expand cloud margins remain an additional tailwind. The company expects non-GAAP operating income to be between $18 million and $24 million.
However, as the company invests more in its ecosystem of implementation partners, service revenues are likely to be impacted. License revenues have likely been impacted by the migration of on-premise customers to the cloud. Management also expects “typical seasonality” to weigh on annual recurring revenue growth (ARR) in the coming quarter. For the first quarter of fiscal 2025, ARR is expected between $869 million and $874 million.
Increasing investment in product improvements, together with the weakness of global macroeconomic conditions and inflation, remains a concern.
Our proven model predicts no profit increase for GWRE this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the likelihood of a profit margin. This is not the case here.
GWRE has an Earnings ESP of 0.00% and a Zacks Rank #2. Our Earnings ESP filter can help you discover the best stocks to buy or sell before they are reported.
Here are some better-ranked stocks to consider, as our model shows they have the right combination of elements to beat earnings this season.
Torrid Holdings Inc. CURV will announce quarterly figures on December 3. Currently, it has an Earnings ESP of +23.08% and a Zacks Rank of #2. You can see it The complete list of today’s Zacks #1 Rank stocks can be found here.
The Zacks Consensus Estimate for CURV’s reportable earnings per share and revenue is set at 3 cents and $282.8 million, respectively. CURV shares have lost 25.1% in the past year.
Rubrik, Inc. RBRK currently has an Earnings ESP of +0.42% and a Zacks Rank #2. RBRK will report quarterly results on December 5. The Zacks Consensus Estimate for Rubrik’s quarterly earnings report is pegged at a loss of 40 cents. The same for revenue is set at $217.6 million. RBRK shares are up 37.3% in the past year.
Casey’s General Stores, Inc. CASY currently has an Earnings ESP of +1.50% and a Zacks Rank #3. CASY will announce quarterly figures on December 9. The Zacks Consensus Estimate for CASY’s next quarter earnings and revenue is pegged at $4.24 per share and $4.01 billion, respectively. Shares of CASY are up 53.2% in the past year.
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