In its upcoming report, ServiceNow (NOW) is predicted by Wall Street analysts to post quarterly earnings of $1.02 per share, reflecting an increase of 6.3% compared to the same period last year. Revenues are forecasted to be $4.09 billion, representing a year-over-year increase of 20%.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed 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 typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific ServiceNow metrics that are commonly monitored and projected by Wall Street analysts.
The combined assessment of analysts suggests that 'Revenues- Professional services and other' will likely reach $113.57 million. The estimate points to a change of +5.2% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenues- Subscription' should come in at $3.98 billion. The estimate indicates a year-over-year change of +20.6%.
Analysts expect 'Current Remaining Performance Obligations(cRPO) - GAAP' to come in at $13.56 billion. Compared to the current estimate, the company reported $11.35 billion in the same quarter of the previous year.
Analysts predict that the 'Remaining Performance Obligations (RPO) - GAAP' will reach $29.32 billion. The estimate is in contrast to the year-ago figure of $24.30 billion.
The consensus estimate for 'Gross Profit (Non-GAAP)- Subscription' stands at $3.21 billion. The estimate compares to the year-ago value of $2.74 billion.
It is projected by analysts that the 'Gross Profit (Non-GAAP)- Professional services and other' will reach $6.03 million. The estimate compares to the year-ago value of $12.00 million.
View all Key Company Metrics for ServiceNow here>>>Shares of ServiceNow have experienced a change of +14% in the past month compared to the -1.2% move of the Zacks S&P 500 composite. With a Zacks Rank #5 (Strong Sell), NOW is expected to underperform the overall market 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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