Service Today (NYSE:NOW) stock is moving higher on Thursday after the company released its earnings report for the third quarter of 2022.
Positive news for NOW starts with ServiceNow’s adjusted earnings per share of $1.96. That’s more than the $1.85 per share Wall Street was expecting for the quarter. It’s also better than the $1.55 per share reported in Q3 2021.
To go along with that, ServiceNow reported revenue of $1.83 billion. Unfortunately, that missed analysts’ revenue estimate of $1.85 billion, although it was a 21% year-over-year (YOY) increase from $1.51 billion.
Brad Zelnick, an analyst for Deutsche Bank, pointed to ServiceNow’s federal business as the reason for the strong Q3 results, per Daily Business Investor:
“Management reiterated that they continue to operate in an uncertain market backdrop similar to what they reported at the end of the last quarter. […] However, execution was clearly solid and likely helped by an all-time record quarter in their US federal business which we think is less economically sensitive.”
NOW Also Offered Q4 Guidance
The latest earnings report includes ServiceNow’s expectations for Q4 2022. For the period, the company sees subscription revenue of between $1.834 billion and $1.839 billion. That represents 20% to 21% growth compared to Q4 2021.
This news has the stock seeing heavy trading on Thursday. As of this writing, over 3 million shares have changed hands. That’s nearly double the company’s daily average trading volume of about 1.7 million shares.
NOW stock was up 12.4% on Thursday afternoon.
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At the date of publication, William White do not hold (either directly or indirectly) any positions in securities mentioned in this article. The opinions expressed in this article are those of the writers, subject to InvestorPlace.com Publishing Guidelines.