Guidewire Software (NYSE:GWRE) will release its quarterly earnings report on Thursday, 2024-12-05. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Guidewire Software to report an earnings per share (EPS) of $0.30.
The announcement from Guidewire Software is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Past Earnings Performance
In the previous earnings release, the company beat EPS by $0.08, leading to a 12.36% increase in the share price the following trading session.
Here's a look at Guidewire Software's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.54 | 0.13 | 0.23 | -0.18 |
| EPS Actual | 0.62 | 0.26 | 0.46 | 0 |
| Price Change % | 12.0% | 18.0% | 1.0% | -1.0% |
Tracking Guidewire Software's Stock Performance
Shares of Guidewire Software were trading at $204.13 as of December 03. Over the last 52-week period, shares are up 110.12%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on Guidewire Software
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Guidewire Software.
A total of 24 analyst ratings have been received for Guidewire Software, with the consensus rating being Outperform. The average one-year price target stands at $198.04, suggesting a potential 2.98% downside.
Comparing Ratings Among Industry Peers
The analysis below examines the analyst ratings and average 1-year price targets of Dynatrace, DocuSign and Manhattan Associates, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- The prevailing sentiment among analysts is an Buy trajectory for Dynatrace, with an average 1-year price target of $61.18, implying a potential 70.03% downside.
- DocuSign received a Neutral consensus from analysts, with an average 1-year price target of $76.2, implying a potential 62.67% downside.
- Analysts currently favor an Buy trajectory for Manhattan Associates, with an average 1-year price target of $304.57, suggesting a potential 49.2% upside.
Peer Analysis Summary
The peer analysis summary presents essential metrics for Dynatrace, DocuSign and Manhattan Associates, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Guidewire Software | Outperform | 7.99% | $186.44M | 1.28% |
| Dynatrace | Buy | 18.89% | $340.35M | 2.09% |
| DocuSign | Neutral | 7.03% | $580.56M | 57.33% |
| Manhattan Associates | Buy | 11.84% | $148.02M | 24.60% |
Key Takeaway:
Guidewire Software ranks at the bottom for Revenue Growth among its peers. It is also at the bottom for Gross Profit. However, it is at the top for Return on Equity.
All You Need to Know About Guidewire Software
Guidewire Software provides software solutions for property and casualty insurers. Flagship product InsuranceSuite is an on-premises system of record and comprises ClaimCenter, a claims management system; PolicyCenter, a policy management system including policy definitions, quotas, issuance, maintenance, and renewal; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a cloud-based offering, as well as a variety of other add-on applications.
Guidewire Software's Financial Performance
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Guidewire Software's remarkable performance in 3 months is evident. As of 31 July, 2024, the company achieved an impressive revenue growth rate of 7.99%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Guidewire Software's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 5.75%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Guidewire Software's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.28%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.79%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.33.
To track all earnings releases for Guidewire Software visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
