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Stay Ahead of the Game With ServiceNow (NOW) Q4 Earnings: Wall Street's Insights on Key Metrics

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In its upcoming report, ServiceNow (NOW - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $2.77 per share, reflecting an increase of 21.5% compared to the same period last year. Revenues are forecasted to be $2.4 billion, representing a year-over-year increase of 23.6%.

The consensus EPS estimate for the quarter has undergone a downward revision of 1.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

In light of this perspective, let's dive into the average estimates of certain ServiceNow metrics that are commonly tracked and forecasted by Wall Street analysts.

It is projected by analysts that the 'Revenues- Professional services and other' will reach $74.49 million. The estimate indicates a year-over-year change of -6.9%.

Analysts forecast 'Revenues- Subscription' to reach $2.32 billion. The estimate points to a change of +24.9% from the year-ago quarter.

Based on the collective assessment of analysts, 'Gross Profit (Non-GAAP)- Subscription' should arrive at $1.93 billion. The estimate is in contrast to the year-ago figure of $1.60 billion.

The consensus estimate for 'Gross Profit (Non-GAAP)- Professional services and other' stands at $6.17 million. The estimate is in contrast to the year-ago figure of $5 million.

View all Key Company Metrics for ServiceNow here>>>

Shares of ServiceNow have experienced a change of +6.5% in the past month compared to the +0.9% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), NOW is expected to underperform 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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