$Guidewire Software (GWRE.US)$ rallied more than 15% to a 2-1/2+ year high Wednesday after the insurance-platform company reported better-than-expected fiscal Q3 results and issued fiscal-2024 revenue guidance that came up above analyst estimates.
GWRE soared as much as 18.2% to a $127.69 intraday high -- the stock's highest level since November 2021.
Shares rallied after the firm reported after the bell Tuesday that quarterly earnings came in at 26 cents per share, which beat the analyst consensus estimate of 13 cents per share.
GWRE also said that quarterly sales totaled $240.7 million, which beat analysts' $231.271 million consensus forecast.
"Our outstanding third quarter results were driven by strong Tier-1 deal volume and an acceleration in migration activity, particularly in Asia Pacific," CEO Mike Rosenbaum said in announcing the results. "Our dedication to continuous innovation and frequent product releases is not only maturing the Guidewire Cloud Platform but also driving global engagement, reinforcing our confidence in delivering on our pipeline and strategic objectives."
Guidewire also said it sees fourth-quarter revenue of $279 million to $287 million vs. analysts' previous consensus estimate of $284.9 million. The company guided revenue for the fiscal year as a whole to $968 million to $976 million vs. analyst estimates of $965.1 million.
The results prompted some analysts to boost their Guideware price targets:
-- BTIG boosted Guidewire's target to $140 from a previous $135 while maintaining the stock's "Buy" rating.
-- BofA Securities increased Guidewire's price target to $95 from an earlier $80, but maintained the stock at "Underperform."