The upcoming report from ServiceNow (NOW) is expected to reveal quarterly earnings of $0.86 per share, indicating an increase of 4.9% compared to the year-ago period. Analysts forecast revenues of $3.92 billion, representing an increase of 22% year over year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific ServiceNow metrics that are routinely monitored and predicted by Wall Street analysts.
The combined assessment of analysts suggests that 'Revenues- Subscription' will likely reach $3.82 billion. The estimate suggests a change of +22.6% year over year.
It is projected by analysts that the 'Revenues- Professional services and other' will reach $107.26 million. The estimate points to a change of +5.2% from the year-ago quarter.
The consensus among analysts is that 'Current Remaining Performance Obligations(cRPO) - GAAP' will reach $13.03 billion. The estimate compares to the year-ago value of $10.92 billion.
The average prediction of analysts places 'Remaining Performance Obligations (RPO) - GAAP' at $28.82 billion. Compared to the current estimate, the company reported $23.90 billion in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Gross Profit (Non-GAAP)- Subscription' should arrive at $3.09 billion. The estimate compares to the year-ago value of $2.59 billion.
Analysts predict that the 'Gross Profit (Non-GAAP)- Professional services and other' will reach $10.73 million. The estimate compares to the year-ago value of $14.00 million.
View all Key Company Metrics for ServiceNow here>>>Shares of ServiceNow have demonstrated returns of +8.6% over the past month compared to the Zacks S&P 500 composite's +0.6% change. With a Zacks Rank #4 (Sell), NOW is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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ServiceNow, Inc. (NOW): Free Stock Analysis Report
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