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Market Overview

Earnings Preview for Guidewire Software


On Tuesday, December 08, Guidewire Software (NYSE:GWRE) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Guidewire Software's per-share loss will be near $0.05 on sales of $164.62 million, according to Wall Street analysts. In the same quarter last year, Guidewire Software reported earnings per share of $0.13 on revenue of $157.01 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, earnings would be down 138.46%. Revenue would be up 4.85% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019
EPS Estimate 0.45 -0.05 0.13 0.03
EPS Actual 0.83 0.09 0.21 0.13
Revenue Estimate 208.94 M 153.43 M 166.39 M 151.71 M
Revenue Actual 243.67 M 168.16 M 173.46 M 157.01 M

Stock Performance

Shares of Guidewire Software were trading at $129.14 as of December 04. Over the last 52-week period, shares are up 20.42%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Guidewire Software is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: Earnings