Why Guidewire Software Shares Skyrocketed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Guidewire Software (NYSE: GWRE  ) have skyrocketed today by as much as 21% after the company reported strong earnings.

So what: Revenue in the fiscal second quarter came in at $72.2 million, easily crushing the consensus estimate of just $64.3 million. The non-GAAP earnings per share of $0.21 similarly made short work of the mere $0.02 per share adjusted profit that the Street was modeling for. The results topped the high end of Guidewire's guidance range.

Now what: CEO Marcus Ryu said several customers made payments earlier than needed, which helped boost results, and the company has been able to up-sell many existing customers. At least two analysts are encouraged. Deutsche Bank boosted its price target from $38 to $41 while keeping a buy rating, seeing opportunity in geographic expansion. UBS followed suit and was encouraged by strong guidance that calls for 2013 sales to grow by 23% to 26%.

Interested in more info on Guidewire? Add it to your watchlist by clicking here.

2013 and beyond
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the repo,rt and find out the name of this under-the-radar company.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 27, 2013, at 5:12 PM, Mega wrote:

    Non-GAAP numbers are worthless. Do your readers a favor and report GAAP numbers too.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2282874, ~/Articles/ArticleHandler.aspx, 5/27/2015 6:20:56 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...