Servicenow Inc Rises 14.26% To $418.36 After Earnings Beat

Thursday, October 27, 2022 – Servicenow Inc (NOW) reported upside earnings and downside earnings.

Servicenow Inc’s earnings came in at EPS of $1.96 per share, 6.00% higher than estimates for an EPS of $1.85 per share. The company’s earnings were up 26% since reporting $1.55 per share in the same period last year. Note, reported earnings are on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus estimates for Servicenow Inc’s revenue averaged $1.9 billion, with the business missing those expectations with reported third-quarter revenue of $1.8 billion. The $19 million (1%) negative revenue surprise led to 21% year-over-year growth as the company reported revenue of $1.5 billion in its previous quarter. Higher revenue growth compared to profit points at Servicenow Inc is improving its profit margin.

The stock rose 14.26% to $418.36 after the report.

The company’s lower revenue growth in revenues indicates that the company has been able to reduce costs and improve its overall profit margin.

The average recommendation from Wall Street analysts is a Strong Buy which may change based on this new data.

Trading in the five days prior to the report earned Servicenow Inc a Bullish Sentiment Rank from InvestorsObserver.

Before the report, InvestorsObserver gave the stock an overall score of 37. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

ServiceNow Inc provides software solutions to structure and automate various business processes through a SaaS delivery model. The company primarily focuses on IT functionality for enterprise customers. ServiceNow started in IT service management (ITSM), expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, namely customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service (PaaS).

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