Guidewire Software Inc. (GWRE) shares dropped 13% in after-hours trading Wednesday after the company slashed its annual guidance. As part of quarterly earnings, the software company said that it now expects full-year revenue of $702 million to $714 million, after previously stating a forecast of $759 million to $771 million, and blamed a faster-than-expected cloud transition. "the growing interest in cloud-based systems is dampening self-managed demand, impacting our full year outlook," Chief Executive Mike Rosenbaum said in Wednesday's announcement ( ). "Ultimately, this trend is a positive validation of our cloud strategy." Guidewire announced fiscal second-quarter earnings of $19.9 million, or 24 cents a share, on sales of $173.5 million, up from $168.5 million a year ago. After adjusting for stock-based compensation and other costs, the company reported earnings of 21 cents a share, down from 33 cents a share a year ago. Analysts on average expected adjusted earnings of 12 cents a share on sales of $163.8 million, according to FactSet. After closing with a 6.1% gain at $112.48, Guidewire shares declined to less than $98 in after-hours trading following the release of the results. Shares have gained 30.3% in the past year, as the S&P 500 index has increased 7.5%.
-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 04, 2020 16:43 ET (21:43 GMT)
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