Compared to Estimates, Guidewire Software (GWRE) Q2 Earnings: A Look at Key Metrics

For the quarter ended January 2025, Guidewire Software (GWRE) reported revenue of $289.48 million, up 20.2% over the same period last year. EPS came in at $0.51, compared to $0.46 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $285.69 million, representing a surprise of +1.33%. The company delivered an EPS surprise of -1.92%, with the consensus EPS estimate being $0.52.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.Here is how Guidewire Software performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Annual recurring revenue: $918.10 million versus $912.32 million estimated by four analysts on average. Revenue- Subscription and support: $177.84 million versus $173.68 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +35.1% change. Revenues- License: $63.69 million compared to the $64.28 million average estimate based on five analysts. The reported number represents a change of -10.4% year over year. Revenues- Services: $47.95 million compared to the $47.94 million average estimate based on five analysts. The reported number represents a change of +25.6% year over year. Gross profit- Subscription and support: $118.74 million versus $117.12 million estimated by four analysts on average. Gross profit- Services: -$2.34 million versus the four-analyst average estimate of $1.44 million. Gross profit- License: $62.75 million compared to the $61.87 million average estimate based on four analysts. View all Key Company Metrics for Guidewire Software here>>>Shares of Guidewire Software have returned -9.5% over the past month versus the Zacks S&P 500 composite's -3.5% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Guidewire Software, Inc. (GWRE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks