Guidewire Software (GWRE) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates

The upcoming report from Guidewire Software (GWRE) is expected to reveal quarterly earnings of $0.94 per share, indicating an increase of 11.9% compared to the year-ago period. Analysts forecast revenues of $402.23 million, representing an increase of 12.8% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

With that in mind, let's delve into the average projections of some Guidewire Software metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts expect 'Revenue- Subscription and support' to come in at $262.88 million. The estimate indicates a year-over-year change of +30.2%.

It is projected by analysts that the 'Revenue- License' will reach $72.90 million. The estimate suggests a change of -22.2% year over year.

The consensus among analysts is that 'Revenue- Services' will reach $66.68 million. The estimate indicates a change of +9.2% from the prior-year quarter.

According to the collective judgment of analysts, 'Revenue- Subscription and support- Subscription' should come in at $249.31 million. The estimate indicates a change of +33.7% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Revenue- Subscription and support- Support' of $13.56 million. The estimate indicates a change of -12.2% from the prior-year quarter.

Analysts forecast 'Annual recurring revenue' to reach $1.23 billion. Compared to the present estimate, the company reported $1.04 billion in the same quarter last year.

The combined assessment of analysts suggests that 'Gross profit- License' will likely reach $72.11 million. Compared to the present estimate, the company reported $92.73 million in the same quarter last year.

The average prediction of analysts places 'Gross profit- Subscription and support' at $188.56 million. The estimate is in contrast to the year-ago figure of $137.32 million.

Over the past month, shares of Guidewire Software have returned +35.5% versus the Zacks S&P 500 composite's +3.9% change. Currently, GWRE carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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