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Guidewire (GWRE) Announces $400M Stock Repurchase Program

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Guidewire (GWRE - Free Report) has announced that its board of directors have authorized a share repurchase program of up to $400 million.

The quantity and timing of share repurchases under the program will be decided by the company based on market conditions and corporate needs. Repurchases under the program may be undertaken in the open market, privately negotiated transactions, or in other ways.

Guidewire has a strong balance sheet, which enables the company to return money to shareholders in the form of share repurchases and invest enough capital in research and development, to launch new products as well as improve existing product lines.

As of Jul 31, 2022, cash and cash equivalents and short-term investments came in at $1.2 billion.

San Mateo, CA-based Guidewire Software is a provider of software solutions for property and casualty insurers.

The company's solutions aid in reducing risk via increased productivity, bringing speed to the market, enhancing digital engagement and simplifying IT infrastructure.

The company recently reported encouraging results with the top line rising 7% year over year to $244.6 million and beating the Zacks Consensus Estimate by 6.6%. The company’s performance benefited from higher revenue growth across subscriptions and services business segments.

For first-quarter fiscal 2023, revenues are expected in the range of $190-$195 million. Annual recurring revenue (ARR) is expected to be between $667 million and $670 million. Non-GAAP operating income (loss) is expected between $(45) million and $(40) million. GAAP operating income (loss) is expected to be between $(82) million and $(77) million.  

For fiscal 2023, the company expects total revenues between $885 million and $895 million. ARR is expected to be between $745 million and $760 million.
Non-GAAP operating loss for fiscal 2023 is projected in the range of $20-$30 million. For fiscal 2022, cash flow from operations is projected in the range of $50-$80 million.

Presently, Guidewire carries a Zacks Rank #3 (Hold). In the past year, shares of the company have lost 50.7% compared with the industry’s decline of 34.5%

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Stocks to Consider

Some better-ranked stocks from the broader technology space are Synopsys (SNPS - Free Report) , Cadence Design System (CDNS - Free Report) and Arista Networks (ANET - Free Report) . Arista Networks and Cadence Design System each currently sport a Zacks Rank #1 (Strong Buy), whereas Synopsys presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Synopsys 2022 earnings is pegged at $8.84 per share, up 4.4% in the past 60 days. The long-term earnings growth rate is anticipated to be 16.2%.

Synopsys earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 3%. Shares of SNPS have decreased 4.9% in the past year.

The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.

Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have decreased 0.5% in the past year.

The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 10.1% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.

Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 25.8% in the past year.

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