AP News

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."

.


Race, Class, and the Future of Ferguson
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus