Guidewire(US:GWRE) ZACKS·2025-03-03 15:20Core Viewpoint - Analysts forecast that Guidewire Software (GWRE) will report quarterly earnings of $0.52 per share, reflecting a year-over-year increase of 13% and revenues of $285.69 million, which is an 18.6% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter, indicating stability in analysts' forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts project 'Revenues- Services' to be $47.94 million, indicating a year-over-year change of +25.6% [4]. - The estimated 'Revenues- License' is $64.28 million, reflecting a decrease of -9.6% from the prior-year quarter [5]. - 'Revenue- Subscription and support' is expected to reach $173.68 million, showing a year-over-year increase of +31.9% [5]. - 'Subscription Revenue' is forecasted at $155.60 million, suggesting a change of +37.5% year over year [5]. - 'Term License Revenue' is estimated at $64.77 million, indicating a decrease of -8.8% from the previous year [6]. - 'Support Revenue' is projected to be $17.56 million, reflecting a decline of -5.2% from the year-ago quarter [6]. - The consensus estimate for 'Annual recurring revenue' stands at $912.32 million, up from $800 million a year ago [6]. Profit Estimates - Analysts estimate 'Gross profit- Subscription and support' to reach $117.12 million, compared to $81.71 million in the same quarter last year [7]. - 'Gross profit- License' is projected at $61.87 million, down from $69.60 million in the prior year [7]. Stock Performance - Over the past month, shares of Guidewire Software have returned -4.7%, while the Zacks S&P 500 composite has changed by -1.3% [8]. - GWRE currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [8].