Earnings To Watch: Guidewire (GWRE) Reports Q1 Results Tomorrow

Max Juang /
2024/06/03 3:01 am EDT

Insurance industry-focused software maker Guidewire (NYSE:GWRE) will be announcing earnings results tomorrow after market hours. Here's what you need to know.

Guidewire met analysts' revenue expectations last quarter, reporting revenues of $240.9 million, up 3.6% year on year. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter.

Is Guidewire a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Guidewire's revenue to grow 11.5% year on year to $231.4 million, improving from the 5.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

Guidewire Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Guidewire has missed Wall Street's revenue estimates twice over the last two years.

Looking at Guidewire's peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Manhattan Associates delivered year-on-year revenue growth of 15.2%, beating analysts' expectations by 4.6%, and Alarm.com reported revenues up 6.5%, topping estimates by 1.6%. Manhattan Associates traded down 10.6% following the results while Alarm.com was also down 1.1%.

Read our full analysis of Manhattan Associates's results here and Alarm.com's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share prices down 5.7% on average over the last month. Guidewire is down 2.4% during the same time and is heading into earnings with an average analyst price target of $126.1 (compared to the current share price of $113.92).

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