Guidewire (GWRE) Reports Q2: Everything You Need To Know Ahead Of Earnings

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

Guidewire beat analysts’ revenue expectations by 4% last quarter, reporting revenues of $240.7 million, up 16% year on year. It was a good quarter for the company, with a decent beat of analysts’ billings estimates.

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 5.2% year on year to $283.9 million, slowing from the 10.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.54 per share.

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 Q2 results, giving us a hint as to what we can expect. Alarm.com delivered year-on-year revenue growth of 4.4%, beating analysts’ expectations by 2.9%, and Manhattan Associates reported revenues up 14.8%, topping estimates by 3.5%. Alarm.com traded down 6.7% following the results while Manhattan Associates was up 10.5%.

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 6.4% on average over the last month. Guidewire is up 2.9% during the same time and is heading into earnings with an average analyst price target of $147.1 (compared to the current share price of $146.14).

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