Benzinga | Jun 1, 2021 10:15AM EDT

A Preview Of Guidewire Software's Earnings

Guidewire Software (NYSE:GWRE) unveils its next round of earnings this Wednesday, June 02. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Guidewire Software EPS loss is expected to be around $0.24, according to sell-side analysts. Sales will likely be near $157.74 million. In the same quarter last year, Guidewire Software reported earnings per share of $0.09 on revenue of $168.16 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Wednesday, earnings would be down 366.67%. Revenue would be down 6.2% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past: Quarter Q2 2021 Q1 2020 Q4 2020 Q3 2020EPS Estimate -0.01 -0.05 0.45 -0.05EPS Actual 0.11 0.17 0.83 0.09Revenue Estimate 170.29 M 164.62 M 208.94 M 153.43 MRevenue Actual 180.06 M 169.80 M 243.67 M 168.16 M

Stock Performance

Over the last 52-week period, shares are down 11.04%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Guidewire Software is scheduled to hold the call at 17:00:00 ET and can be accessed here.