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Countdown to ServiceNow (NOW) Q1 Earnings: A Look at Estimates Beyond Revenue and EPS
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Wall Street analysts expect ServiceNow (NOW - Free Report) to post quarterly earnings of $0.95 per share in its upcoming report, which indicates a year-over-year increase of 17.3%. Revenues are expected to be $3.75 billion, up 21.4% from the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance 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.
Bearing this in mind, let's now explore the average estimates of specific ServiceNow metrics that are commonly monitored and projected by Wall Street analysts.
It is projected by analysts that the 'Revenues- Subscription' will reach $3.65 billion. The estimate points to a change of +21.5% from the year-ago quarter.
Analysts' assessment points toward 'Revenues- Professional services and other' reaching $90.54 million. The estimate indicates a change of +9.1% from the prior-year quarter.
The consensus among analysts is that 'Remaining Performance Obligations (RPO) - GAAP' will reach $27.53 billion. Compared to the present estimate, the company reported $22.10 billion in the same quarter last year.
According to the collective judgment of analysts, 'Current Remaining Performance Obligations(cRPO) - GAAP' should come in at $12.63 billion. The estimate is in contrast to the year-ago figure of $10.31 billion.
Analysts predict that the 'Gross Profit (Non-GAAP)- Subscription' will reach $3.00 billion. The estimate compares to the year-ago value of $2.53 billion.
The consensus estimate for 'Gross Profit (Non-GAAP)- Professional services and other' stands at $8.42 million. Compared to the current estimate, the company reported $4.00 million in the same quarter of the previous year.
Shares of ServiceNow have experienced a change of -14.9% in the past month compared to the +5.2% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), NOW is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Countdown to ServiceNow (NOW) Q1 Earnings: A Look at Estimates Beyond Revenue and EPS
Wall Street analysts expect ServiceNow (NOW - Free Report) to post quarterly earnings of $0.95 per share in its upcoming report, which indicates a year-over-year increase of 17.3%. Revenues are expected to be $3.75 billion, up 21.4% from the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance 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.
Bearing this in mind, let's now explore the average estimates of specific ServiceNow metrics that are commonly monitored and projected by Wall Street analysts.
It is projected by analysts that the 'Revenues- Subscription' will reach $3.65 billion. The estimate points to a change of +21.5% from the year-ago quarter.
Analysts' assessment points toward 'Revenues- Professional services and other' reaching $90.54 million. The estimate indicates a change of +9.1% from the prior-year quarter.
The consensus among analysts is that 'Remaining Performance Obligations (RPO) - GAAP' will reach $27.53 billion. Compared to the present estimate, the company reported $22.10 billion in the same quarter last year.
According to the collective judgment of analysts, 'Current Remaining Performance Obligations(cRPO) - GAAP' should come in at $12.63 billion. The estimate is in contrast to the year-ago figure of $10.31 billion.
Analysts predict that the 'Gross Profit (Non-GAAP)- Subscription' will reach $3.00 billion. The estimate compares to the year-ago value of $2.53 billion.
The consensus estimate for 'Gross Profit (Non-GAAP)- Professional services and other' stands at $8.42 million. Compared to the current estimate, the company reported $4.00 million in the same quarter of the previous year.
View all Key Company Metrics for ServiceNow here>>>Shares of ServiceNow have experienced a change of -14.9% in the past month compared to the +5.2% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), NOW is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .