Insurance software provider Guidewire Software (NYSE: GWRE) will be reporting results this Thursday after the bell. Here’s what to expect.
Guidewire Software beat analysts’ revenue expectations last quarter, reporting revenues of $372.5 million, up 26.9% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ billings estimates.
Is Guidewire Software a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Guidewire Software’s revenue to grow 12.8% year on year, slowing from the 22.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Guidewire Software has a history of exceeding Wall Street’s expectations.
Looking at Guidewire Software’s peers in the vertical software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Alarm.com delivered year-on-year revenue growth of 9.2%, beating analysts’ expectations by 4.9%, and Manhattan Associates reported revenues up 9.3%, topping estimates by 3.5%. Alarm.com traded up 2.2% following the results while Manhattan Associates was also up 21.3%.
Read our full analysis of Alarm.com’s results here and Manhattan Associates’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 11.1% on average over the last month. Guidewire Software is up 28.7% during the same time and is heading into earnings with an average analyst price target of $206.93 (compared to the current share price of $202.48).
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