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Wall Street's Insights Into Key Metrics Ahead of Guidewire Software (GWRE) Q3 Earnings

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In its upcoming report, Guidewire Software (GWRE - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.46 per share, reflecting an increase of 76.9% compared to the same period last year. Revenues are forecasted to be $285.72 million, representing a year-over-year increase of 18.7%.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

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.

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

The combined assessment of analysts suggests that 'Revenue- Subscription and support' will likely reach $178.14 million. The estimate points to a change of +29.1% from the year-ago quarter.

Analysts' assessment points toward 'Subscription Revenue' reaching $162.74 million. The estimate indicates a change of +35.1% from the prior-year quarter.

The consensus among analysts is that 'Revenues- License' will reach $55.33 million. The estimate indicates a change of -1.6% from the prior-year quarter.

It is projected by analysts that the 'Revenues- Services' will reach $52.00 million. The estimate indicates a year-over-year change of +11.8%.

Analysts expect 'Support Revenue' to come in at $15.41 million. The estimate indicates a year-over-year change of -12.2%.

Based on the collective assessment of analysts, 'Term License Revenue' should arrive at $54.48 million. The estimate indicates a year-over-year change of -1%.

The consensus estimate for 'Annual recurring revenue' stands at $944.40 million. The estimate is in contrast to the year-ago figure of $828 million.

According to the collective judgment of analysts, 'Gross profit- Subscription and support' should come in at $120.51 million. Compared to the present estimate, the company reported $86.79 million in the same quarter last year.

Analysts predict that the 'Gross profit- License' will reach $54.87 million. Compared to the present estimate, the company reported $55.37 million in the same quarter last year.

View all Key Company Metrics for Guidewire Software here>>>

Guidewire Software shares have witnessed a change of +1.9% in the past month, in contrast to the Zacks S&P 500 composite's +6.7% move. With a Zacks Rank #3 (Hold), GWRE is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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