Insurance industry-focused software maker Guidewire (NYSE: GWRE) will be reporting earnings tomorrow afternoon. Here’s what investors should know.
Guidewire beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $289.5 million, up 20.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
Is Guidewire a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Guidewire’s revenue to grow 19.1% year on year to $286.6 million, improving from the 16% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Guidewire has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Guidewire’s peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Manhattan Associates delivered year-on-year revenue growth of 3.2%, beating analysts’ expectations by 2.3%, and Bentley reported revenues up 9.7%, topping estimates by 1.4%. Manhattan Associates traded up 5.8% following the results while Bentley was also up 7.5%.
Read our full analysis of Manhattan Associates’s results here and Bentley’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 7.6% on average over the last month. Guidewire is up 2.2% during the same time and is heading into earnings with an average analyst price target of $210.72 (compared to the current share price of $214.95).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
