Guidewire shares jump in after-hours trading
FOSTER CITY, Calif. (AP) — Guidewire Software Inc.'s shares jumped in after-hours trading Tuesday as the insurance industry software provider reported that its fiscal fourth-quarter profit beat market expectations.
Shares were up $3.33, or 11.4 percent, to $32.68 in extended trading.
The Foster City, Calif.-based company earned $3.5 million, or 6 cents per share, for the quarter that ended July 31. That's compared with a loss of $1.2 million, or 6 cents per share, in the same period last year when it had significantly fewer shares outstanding.
After adjusting for stock-based compensation and other special items, it earned 10 cents per share.
Total revenue increased 33 percent to $67.6 million from $51 million on stronger license, service and maintenance revenue.
Analysts polled by FactSet expected a loss of 2 cents per share on revenue of $62.4 million.
Guidewire earned $15.2 million, or 25 cents per share, for the full fiscal year compared with $35.6 million, or 76 cents per share, in the prior year. Revenue was up 35 percent to $232.1 million.
"We believe the $1.2 trillion insurance industry is still in the early days of the inevitable replacement of its legacy core systems with flexible, next-generation software," Guidewire CEO Marcus Ryu said. "We also believe that Guidewire is well positioned to capture a disproportionate share of this major opportunity over time."