Guidewire Q3 Earnings Report: Key Factors to Watch
Guidewire, a software company focused on the insurance industry, is set to release its earnings report after market hours tomorrow. Last quarter, Guidewire exceeded analysts’ revenue expectations by 2.7%, bringing in $291.5 million, an 8% increase from the previous year. This strong performance included surpassing analysts’ billing estimates and providing revenue guidance for the next quarter that outpaced expectations.
For the upcoming quarter, analysts predict that Guidewire’s revenue will grow by 22.4% year-over-year to $254 million, a significant improvement from the 6.2% growth seen in the same quarter the previous year. Adjusted earnings are projected to be $0.30 per share.
Analysts who cover Guidewire have maintained their estimates over the past month, indicating confidence in the company’s performance leading up to the earnings report. However, it’s worth noting that Guidewire has missed Wall Street’s revenue estimates twice in the past two years.
In comparison to other companies in the vertical software sector, Alarm.com and Manhattan Associates have already reported their Q3 results. Alarm.com saw an 8.4% increase in revenue year-on-year, surpassing expectations by 3.9%, while Manhattan Associates reported an 11.8% revenue growth, exceeding estimates by 1.3%. This resulted in Alarm.com’s stock rising by 11.2% and Manhattan Associates’ stock falling by 7.3% following their respective reports.
Overall, there has been positive investor sentiment in the vertical software segment, with an average increase of 16.8% in share prices over the last month. Guidewire has shown a 9.6% rise during the same period and currently holds an average analyst price target of $195.55, slightly below its current share price of $204.
As investors await Guidewire’s earnings report, the industry is buzzing with anticipation to see how the company will perform this quarter. Stay tuned for the latest updates on Guidewire’s financial results.
