HJBC/iStock Editorial via Getty Images
Service Today (NYSE: NOW) is scheduled to announce Q3 earnings results on Tuesday, October 25th, after the market closes.
The consensus EPS Estimate is $1.85 (+19.4% Y/Y) and the consensus Revenue Estimate is $1.85B (+22.5% Y/Y).
Subscription revenues are projected between $1.75B-1.755B, suggesting an improvement of 27.5% Y/Y.
Top line growth is likely to be driven by a robust product portfolio and strong demand for the Now Platform.
Q2 earnings were better than expected, however, shares fell more than 4% in the wake of the cloud-based business software company cutting its full-year subscription revenue forecast.
The company can benefit from strong adoption of its workflow solutions that has accelerated the trend of digital transformation.
On Monday, the stock rose as investment firm Guggenheim upgraded the cloud computing software company, calling it a “distinctive asset and leading company” even in the face of a potential recession. The analyst raised the rating to buy from neutral, with a $510 price target.
JP Morgan analyst Mark Murphy said the cloud-software company’s long-term potential earns an outperform rating.
Over the last 2 years, NOW beat EPS estimates 100% of the time and beat revenue estimates 100% of the time.
Over the past 3 months, EPS estimates have seen 11 upward revisions and 17 downward revisions. Earnings estimates saw 0 upward changes and 22 downward changes.
The company has a buy rating from SA authors: and the comments on the stocks are like – ‘The company’s growth may face recessionary pressure, but long-term subscription contracts and the company’s team must protect them.’; ‘more headwinds in ServiceNow’s global business. Climbing the dollar index and the looming global recession could be a big challenge.’; ‘By buying stock at these prices, you’ll have an annual ROI of less than 8%.’
Wall Street analysts rate it a strong buy rating and a price target of $533.94.
Quant rating of the hold with the lowest factor rating given on valuation and highest on profitability.
In general, software stocks underperform as risks increase.
Comparing price performance and stock ratings against peers:
