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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%.

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