Guidewire Software Analysts Increase Their Forecasts Following Q2 Results

Guidewire Software, Inc. GWRE reported worse-than-expected second-quarter revenue results and issued FY24 revenue guidance below estimates on Thursday.

Guidewire Software posted adjusted earnings of 46 cents per share, beating market estimates of 23 per share. The company’s quarterly sales came in at $240.897 million, missing expectations of $240.913 million, according to data from Benzinga Pro.

"We are pleased with the continued cloud momentum, enabling us to beat and raise our ARR outlook and deliver 65% non-GAAP subscription and support gross margins in the quarter," said Jeff Cooper, chief financial officer, Guidewire. "Our fiscal year 2024 revenue outlook change is due to lower expected services revenue, as we are seeing success with our SI partners leading more cloud engagements at a pace that is faster than we originally expected. We are maintaining our profitability outlook as strong subscription and support gross margin and operating expense discipline offset the impact of lower services revenue."

Guidewire Software said it sees FY24 revenue of $957 million to $967 million, versus market estimates of $982.653 million.

Guidewire Software shares gained 1.5% to close at $116.93 on Thursday.

These analysts made changes to their price targets on Guidewire Software after the company reported quarterly results.

• JMP Securities raised the price target on Guidewire Software from $115 to $141. JMP Securities analyst Aaron Kimson maintained an Outperform rating.
• Wells Fargo increased the price target on Guidewire Software from $120 to $130. Wells Fargo analyst Michael Turrin maintained an Overweight rating.

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