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Guidewire (GWRE) to Report Q4 Earnings: What's in Store?
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Guidewire Software, Inc (GWRE - Free Report) is slated to report fourth-quarter fiscal 2023 results on Sep 7.
Management expects revenues in the range of $255-$265 million. The Zacks Consensus Estimate is pegged at $261 million, suggesting a 6.7% increase from the prior-year quarter’s reported level.
The consensus estimate for earnings is pegged at 34 cents per share, unchanged in the past 30 days. GWRE reported earnings of 3 cents in the year-ago reported quarter.
Guidewire’s performance is likely to have gained from higher demand for cloud-based insurance software solutions.
Strong uptake of multiple components of GWRE’s InsurancePlatform, including InsuranceSuite, digital, data and analytics, is anticipated to have acted as a tailwind. Healthy adoption witnessed in subscription-based InsuranceSuite Cloud offerings is expected to have contributed to subscription and support segment’s revenues in the to-be-reported quarter. Also, migration activity for InsuranceSuite Cloud is likely to have favored the company’s top-line performance.
Continued momentum in data and analytics offerings is likely to have acted as a key growth factor. Synergies from the buyout of HazardHub are expected to have contributed to segmental performance.
Improvement in subscription and support segments’ gross margins is likely to favor overall margin performance.
Driven by new sales and deal ramps, annual recurring revenues (ARR) were $722 million as of Apr 30, up 13.3% (rose 17% on constant-currency basis) year over year. Management expects ARR to be between $745 million and $755 million for the quarter to be reported.
Weakness in global macroeconomic conditions and inflation is compelling to reduce expenses especially for mid and small-scale businesses and is likely to have acted as a headwind. Increasing investments on product enhancements are expected to have put pressure on margin expansion in fiscal fourth quarter.
What Our Model Says
According to the Zacks model, 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. But that’s not the case here.
Guidewire has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Key Picks
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
American Eagle Outfitters is set to release second-quarter fiscal 2023 results on Sep 6. The Zacks Consensus Estimate for earnings is pegged at 15 cents per share, suggesting a surge of 275% from the prior-year quarter’s reported figure. Shares of AEO have gained 52.1% in the past year.
Dave & Buster's Entertainment, Inc (PLAY - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of 3.
Dave & Buster's Entertainment is slated to report second-quarter fiscal 2023 numbers on Sep 6. The Zacks Consensus Estimate for earnings is pegged at 94 cents per share, indicating an increase of 54.1% from the year-earlier quarter’s levels. Shares of PLAY have lost 6.6% of their value in the past year.
Casey's General Stores, Inc (CASY - Free Report) has an Earnings ESP of +1.29% and a Zacks Rank of 3.
Casey's General Stores is scheduled to post first-quarter fiscal 2024 figures on Sep 11. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share. Shares of CASY have gained 14.6% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Guidewire (GWRE) to Report Q4 Earnings: What's in Store?
Guidewire Software, Inc (GWRE - Free Report) is slated to report fourth-quarter fiscal 2023 results on Sep 7.
Management expects revenues in the range of $255-$265 million. The Zacks Consensus Estimate is pegged at $261 million, suggesting a 6.7% increase from the prior-year quarter’s reported level.
The consensus estimate for earnings is pegged at 34 cents per share, unchanged in the past 30 days. GWRE reported earnings of 3 cents in the year-ago reported quarter.
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 gained from higher demand for cloud-based insurance software solutions.
Strong uptake of multiple components of GWRE’s InsurancePlatform, including InsuranceSuite, digital, data and analytics, is anticipated to have acted as a tailwind. Healthy adoption witnessed in subscription-based InsuranceSuite Cloud offerings is expected to have contributed to subscription and support segment’s revenues in the to-be-reported quarter. Also, migration activity for InsuranceSuite Cloud is likely to have favored the company’s top-line performance.
Continued momentum in data and analytics offerings is likely to have acted as a key growth factor. Synergies from the buyout of HazardHub are expected to have contributed to segmental performance.
Improvement in subscription and support segments’ gross margins is likely to favor overall margin performance.
Driven by new sales and deal ramps, annual recurring revenues (ARR) were $722 million as of Apr 30, up 13.3% (rose 17% on constant-currency basis) year over year. Management expects ARR to be between $745 million and $755 million for the quarter to be reported.
Weakness in global macroeconomic conditions and inflation is compelling to reduce expenses especially for mid and small-scale businesses and is likely to have acted as a headwind. Increasing investments on product enhancements are expected to have put pressure on margin expansion in fiscal fourth quarter.
What Our Model Says
According to the Zacks model, 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. But that’s not the case here.
Guidewire has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Key Picks
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +8.52% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters is set to release second-quarter fiscal 2023 results on Sep 6. The Zacks Consensus Estimate for earnings is pegged at 15 cents per share, suggesting a surge of 275% from the prior-year quarter’s reported figure. Shares of AEO have gained 52.1% in the past year.
Dave & Buster's Entertainment, Inc (PLAY - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of 3.
Dave & Buster's Entertainment is slated to report second-quarter fiscal 2023 numbers on Sep 6. The Zacks Consensus Estimate for earnings is pegged at 94 cents per share, indicating an increase of 54.1% from the year-earlier quarter’s levels. Shares of PLAY have lost 6.6% of their value in the past year.
Casey's General Stores, Inc (CASY - Free Report) has an Earnings ESP of +1.29% and a Zacks Rank of 3.
Casey's General Stores is scheduled to post first-quarter fiscal 2024 figures on Sep 11. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share. Shares of CASY have gained 14.6% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.