Stock Buzz: Guidewire Software, Inc. (NYSE:GWRE)

Guidewire Software, Inc. (NYSE:GWRE) reported earnings for the three months ended April 2016 on June 01, 2016. The company earned $0.14 per share on revenue of $98.86M. Analysts had been modeling earning per share of $0.06 with $92.4M in revenue.

Guidewire Software, Inc. (NYSE:GWRE) announced its financial results for the fiscal quarter ended April 30, 2016.

Third Quarter Fiscal 2016 Financial Highlights

Revenue

  • License revenue for the third quarter of fiscal 2016 was $45.8 million, an increase of 38% from the third quarter of fiscal 2015. License revenue for the third quarter of fiscal 2016 included perpetual license revenue of $5.2 million compared with $2.5 million in the same period a year ago. Maintenance revenue was $14.7 million, an increase of 20% and services revenue was $38.4 million, a decrease of 4%. Total revenue was $98.9 million, an increase of 16% from the same quarter in fiscal 2015.
  • License revenue for the nine months ended April 30, 2016 was $131.5 million, an increase of 24% from the comparable period of fiscal 2015. License revenue for the nine months ended April 30, 2016 included perpetual license revenue of $5.6 million compared with $5.0 million in the same period a year ago. Maintenance revenue was $42.9 million, an increase of 16% and services revenue was $108.8 million, a decrease of 3%. Total revenue was $283.3 million, an increase of 11% from the same period in fiscal 2015.
  • Rolling four-quarter recurring term license and maintenance revenue was $250.6 million, an increase of 20% compared to the same period in fiscal 2015.

Profitability

  • GAAP operating loss was $5.8 million for the third quarter of fiscal 2016, compared with an operating loss of $6.7 million in the comparable period in fiscal 2015.
  • Non-GAAP operating income was $11.0 million for the third quarter of fiscal 2016, compared with $6.1 million in the comparable period in fiscal 2015.
  • GAAP net loss was $0.4 million for the third quarter of fiscal 2016, compared with net loss of $3.0 million for the comparable period in fiscal 2015. GAAP net loss per share was $0.01, based on diluted weighted average shares outstanding of 72.3 million, compared with net loss of $0.04 per share for the comparable period in fiscal 2015, based on diluted weighted average shares outstanding of 70.3 million.
  • Non-GAAP net income was $10.7 million for the third quarter of fiscal 2016, compared with $2.7 million in the comparable period in fiscal 2015. Non-GAAP net income per diluted share was $0.14, based on diluted weighted average shares outstanding of 73.6 million, compared with $0.04 in the comparable period in fiscal 2015, based on diluted weighted average shares outstanding of 72.3 million.

Guidewire Software, Inc. earnings per share showed a decreasing trend of -35.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 84%.Analysts project EPS growth over the next 5 years at 19.15%. It has EPS annual growth over the past 5 fiscal years of 9.2% when sales grew 21.3. It reported 15.8% sales growth, and 86.8% EPS growth in the last quarter.

The stock is trading at $63.04, up 48.96% from 52-week low of $42.32. The stock trades down -2.69% from its peak of $64.78 and 11.31% above the consensus price target of $70.17. Its volume clocked up at 0.91 million shares which is higher than the average volume of 0.38 million shares. Its market capitalization currently stands at $4.40B.

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