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Factors to Note Ahead of Guidewire's (GWRE) Q3 Earnings Release
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Guidewire Software, Inc (GWRE - Free Report) is slated to report third-quarter fiscal 2024 results on Jun 4.
Management expects revenues in the range of $228-$234 million. The Zacks Consensus Estimate is pegged at $231.5 million, suggesting an 11.6% increase from the prior-year quarter.
The consensus estimate is pegged at 13 cents per share, unchanged in the past 60 days. GWRE reported a loss of 8 cents per share in the year-ago period.
Guidewire’s performance is likely to have benefited from higher demand for cloud-based insurance software solutions. Management expects annual recurring revenues between $815 million and $820 million for the fiscal third quarter.
Guidewire Cloud gained momentum, with 11 cloud deals in the last reported quarter. Out of these 11 deals, 10 were for its InsuranceSuite Cloud offering. Guidewire’s InsuranceSuite Cloud comprises three primary applications, namely PolicyCenter Cloud, BillingCenter Cloud and ClaimCenter Cloud.
The company’s focus on enhancing the Guidewire Cloud platform with new capabilities is expected to have boosted sales of subscription-based solutions. We expect subscription revenues to be $116.4 million, up 30.7% year over year.
Management’s efforts to drive cloud operations efficiency to boost cloud margins remain an additional tailwind. Management expects non-GAAP operating income between $4 million and $10 million.
The company has been expanding its network of partners (which includes SIs and solution providers) to drive sustained activity and greater value from the platform.
However, as the company invests more in its ecosystem of implementation partners, service revenues are likely to have been affected.
Increasing investments in product enhancements are expected to have put pressure on margin expansion in the fiscal third quarter. Weakness in global macroeconomic conditions and inflation remain concerning.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for GWRE. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
GWRE has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some better-ranked stocks that you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
The Zacks Consensus Estimate for XAIR’s to-be-reported quarter’s bottom line is pegged at a loss of 47 cents. Shares of XAIR have lost 76.8% of their value in the past year.
Bath & Body Works, Inc (BBWI - Free Report) has an Earnings ESP of +5.23% and currently carries a Zacks Rank #2. BBWI is scheduled to report quarterly earnings on Jun 4.
The Zacks Consensus Estimate for BBWI’s to-be-reported quarter’s earnings and revenues is pegged at 33 cents per share and $1.37 billion, respectively. Shares of BBWI have surged 40.3% in the past year.
General Mills, Inc. (GIS - Free Report) has an Earnings ESP of +0.56% and presently carries a Zacks Rank #3. GIS is slated to release quarterly numbers on Jun 26.
The Zacks Consensus Estimate for GIS’ to-be-reported quarter’s earnings and revenues is pegged at 99 cents per share and $4.88 billion, respectively. Shares of GIS have lost 20.6%of their value in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar
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Factors to Note Ahead of Guidewire's (GWRE) Q3 Earnings Release
Guidewire Software, Inc (GWRE - Free Report) is slated to report third-quarter fiscal 2024 results on Jun 4.
Management expects revenues in the range of $228-$234 million. The Zacks Consensus Estimate is pegged at $231.5 million, suggesting an 11.6% increase from the prior-year quarter.
The consensus estimate is pegged at 13 cents per share, unchanged in the past 60 days. GWRE reported a loss of 8 cents per share in the year-ago period.
Guidewire Software, Inc. Price and EPS Surprise
Guidewire Software, Inc. price-eps-surprise | Guidewire Software, Inc. Quote
Factors at Play
Guidewire’s performance is likely to have benefited from higher demand for cloud-based insurance software solutions. Management expects annual recurring revenues between $815 million and $820 million for the fiscal third quarter.
Guidewire Cloud gained momentum, with 11 cloud deals in the last reported quarter. Out of these 11 deals, 10 were for its InsuranceSuite Cloud offering. Guidewire’s InsuranceSuite Cloud comprises three primary applications, namely PolicyCenter Cloud, BillingCenter Cloud and ClaimCenter Cloud.
The company’s focus on enhancing the Guidewire Cloud platform with new capabilities is expected to have boosted sales of subscription-based solutions. We expect subscription revenues to be $116.4 million, up 30.7% year over year.
Management’s efforts to drive cloud operations efficiency to boost cloud margins remain an additional tailwind. Management expects non-GAAP operating income between $4 million and $10 million.
The company has been expanding its network of partners (which includes SIs and solution providers) to drive sustained activity and greater value from the platform.
However, as the company invests more in its ecosystem of implementation partners, service revenues are likely to have been affected.
Increasing investments in product enhancements are expected to have put pressure on margin expansion in the fiscal third quarter. Weakness in global macroeconomic conditions and inflation remain concerning.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for GWRE. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
GWRE has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some better-ranked stocks that you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
Beyond Air, Inc (XAIR - Free Report) has an Earnings ESP of +12.77% and a Zacks Rank of 2. It is set to announce quarterly figures on Jun 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for XAIR’s to-be-reported quarter’s bottom line is pegged at a loss of 47 cents. Shares of XAIR have lost 76.8% of their value in the past year.
Bath & Body Works, Inc (BBWI - Free Report) has an Earnings ESP of +5.23% and currently carries a Zacks Rank #2. BBWI is scheduled to report quarterly earnings on Jun 4.
The Zacks Consensus Estimate for BBWI’s to-be-reported quarter’s earnings and revenues is pegged at 33 cents per share and $1.37 billion, respectively. Shares of BBWI have surged 40.3% in the past year.
General Mills, Inc. (GIS - Free Report) has an Earnings ESP of +0.56% and presently carries a Zacks Rank #3. GIS is slated to release quarterly numbers on Jun 26.
The Zacks Consensus Estimate for GIS’ to-be-reported quarter’s earnings and revenues is pegged at 99 cents per share and $4.88 billion, respectively. Shares of GIS have lost 20.6%of their value in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar