Guidewire Software, Inc. | $GWRE Stock | Shares Spike Up On Positive Earnings & Revenue Numbers


Guidewire Software, Inc. (NASDAQ: GWRE)



Guidewire Software, Inc. (GWRE), a software insurance company yesterday reported their fiscal third quarter 2016 financial results. Guidewire reported third quarter earnings of  $0.14 per share which beat analyst expectations of $0.06 per share. Guidewire reported third quarter revenues increased 15.8% year over year to $98.9 million which beat analyst expectations of $92.45 million.  


Guidewire Software, Inc. CEO’s Comments

“Revenue and profitability exceeded the high end of our outlook in our third quarter,” said Marcus Ryu, chief executive officer, Guidewire Software. “We see our results as reflective of the global P&C industry’s pursuit of technology-driven business transformation and our own journey towards market leadership.”

Ryu continued, “Our technology platform unifies core operations, digital engagement, and data for P&C insurers embracing the need for business transformation. Our acquisition of EagleEye Analytics in the quarter augments this platform with machine-learning-based models optimized for P&C in both underwriting and claims. These models naturally complement Guidewire InsuranceSuite by analyzing our customers’ operational data and providing actionable insights to their business users. We continue to invest in opportunities to expand the scope of our product platform while further driving standardization — and thereby cost efficiency — for the industry as a whole.”  Business Wire


GWRE Technical Analysis

GWRE Chart

GWRE opened trading yesterday at $58.73 which was up from the previous days trading of $58.70. GWRE closed trading yesterday at $60.48 and spiked up after market to $63.10, equivalent to a 4% increase from the closing price. Taking a look at the daily chart we can see that the last time GWRE traded above this price level was on December 2nd when it traded at its 52 week high price of $64.78. Taking a closer look at the daily chart we can see that GWRE has been on an overall upward trend dating back to February 11th when it traded at its 52 week low price of  $42.32. GWRE has a float of 71.99 million shares and traded almost 3 times the normal daily trading volume on Wednesday. For trading purposes, I would like to see GWRE open trading on Thursday above $62.25 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

Guidewire Software, Inc. provides software products for property and casualty (P&C) insurers. It offers a technology platform supports core insurance operations, including underwriting and policy administration, claim management, and billing. The company’s products include Guidewire InsuranceSuite comprising Guidewire PolicyCenter, an underwriting and policy administration application; Guidewire ClaimCenter, a claims management application; and Guidewire BillingCenter, a comprehensive billing and receivables application. Its InsuranceSuite add-on modules consist of Guidewire Rating Management to manage the pricing of insurance products; Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes; Guidewire Client Data Management; and Guidewire Standards-Based Templates to facilitate both initial implementation and ongoing maintenance of insurance products. The company also provides data management and analytics products, including Guidewire DataHub, an operational data store that unifies, standardizes, and stores data from the patchwork of an insurer’s systems, as well as external sources; Guidewire InfoCenter, a business intelligence warehouse providing information for business intelligence, analysis, and decision making; and Guidewire Live, a cloud-based suite of analytical applications that aggregate data from internal and third-party sources. In addition, it offers Guidewire Digital Portals that deliver real-time, self-service capabilities, as well as provides implementation and integration, maintenance support, and professional services. It serves insurance carriers for P&C. The company markets and sells its products across the United States, Canada, the United Kingdom, France, Germany, the Nordics, Eastern Europe, Australia, Japan, and China. Guidewire Software, Inc. was founded in 2001 and is headquartered in Foster City, California.  Yahoo Finance