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Seeking Clues to ServiceNow (NOW) Q3 Earnings? A Peek Into Wall Street Projections for Key Metrics

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Wall Street analysts expect ServiceNow (NOW - Free Report) to post quarterly earnings of $3.46 per share in its upcoming report, which indicates a year-over-year increase of 18.5%. Revenues are expected to be $2.74 billion, up 19.8% from the year-ago quarter.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements 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.

Given this perspective, it's time to examine the average forecasts of specific ServiceNow metrics that are routinely monitored and predicted by Wall Street analysts.

It is projected by analysts that the 'Revenues- Professional services and other' will reach $78.15 million. The estimate points to a change of +8.5% from the year-ago quarter.

The consensus among analysts is that 'Revenues- Subscription' will reach $2.66 billion. The estimate indicates a change of +20.2% from the prior-year quarter.

According to the collective judgment of analysts, 'Current Remaining Performance Obligations(cRPO) - GAAP' should come in at $9.10 billion. The estimate is in contrast to the year-ago figure of $7.43 billion.

Based on the collective assessment of analysts, 'Remaining Performance Obligations (RPO) - GAAP' should arrive at $18.41 billion. Compared to the current estimate, the company reported $14.4 billion in the same quarter of the previous year.

The average prediction of analysts places 'Gross Profit (Non-GAAP)- Subscription' at $2.24 billion. Compared to the current estimate, the company reported $1.87 billion in the same quarter of the previous year.

Analysts forecast 'Gross Profit (Non-GAAP)- Professional services and other' to reach $9.05 million. The estimate is in contrast to the year-ago figure of $7 million.

View all Key Company Metrics for ServiceNow here>>>

Shares of ServiceNow have experienced a change of -0.2% in the past month compared to the +3.8% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), NOW is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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