Guidewire Software Earnings: Here’s Why the Stock is Rising Now

Guidewire Software (NYSE:GWRE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.31%.

Guidewire Software Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 150% to $0.25 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Rose 43.36% to $96.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Guidewire Software reported adjusted EPS income of $0.25 per share. By that measure, the company beat the mean analyst estimate of $0.14. It beat the average revenue estimate of $93.1 million.

Quoting Management: “Revenue and profitability exceeded our expectations in the fourth quarter, contributing to full year revenue growth of 30% and trailing twelve month recurring revenue growth of 44%,” said Marcus Ryu, Chief Executive Officer of Guidewire Software. “Investments in sales, delivery and new products helped us to advance our market leadership position in fiscal 2013 by expanding our customer base, including several key Tier 1 wins and our 50th PolicyCenter customer. We also achieved more multi-product and Suite transactions than last year and achieved the milestone of bringing our 100th customer into live production.”

Key Stats (on next page)…

Revenue increased 41.98% from $68.25 million in the previous quarter. EPS increased 525% from $0.04 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.03 and has not changed. For the current year, the average estimate is a profit of $0.50, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)