Insurance industry-focused software maker Guidewire (NYSE:GWRE) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.
Guidewire beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $291.5 million, up 8% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ billings estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Is Guidewire a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Guidewire’s revenue to grow 22.4% year on year to $254 million, improving from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Guidewire has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Guidewire’s peers in the vertical software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Alarm.com delivered year-on-year revenue growth of 8.4%, beating analysts’ expectations by 3.9%, and Manhattan Associates reported revenues up 11.8%, topping estimates by 1.3%. Alarm.com traded up 11.2% following the results while Manhattan Associates was down 7.3%.
Read our full analysis of Alarm.com’s results here and Manhattan Associates’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 16.8% on average over the last month. Guidewire is up 9.6% during the same time and is heading into earnings with an average analyst price target of $195.55 (compared to the current share price of $204).
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