Guidewire Software Profit Tops Estimates; Stock Up - Update

(RTTNews) - Guidewire Software Inc. (GWRE) Tuesday reported a higher fourth-quarter profit, on increased license and service revenue. Both earnings and revenue topped Wall Street estimates. Shares of the company gained 11 percent in after-hours trading on the New York Stock Exchange.

"Investments in sales, delivery and new products helped us to advance our market leadership position in fiscal 2013 by expanding our customer base," said CEO Marcus Ryu.

Foster City, California-based Guidewire reported a quarterly net profit of $12 million or $0.19 per share, compared with $3.5 million or $0.06 per share last year.

Excluding items, adjusted earnings for the quarter were $15.6 million or $0.25 per share, compared with $6.4 million or $0.10 per share in the prior year.

On average, six analysts polled by Thomson Reuters estimated earnings of $0.14 per share for the quarter. Analysts' estimates typically exclude special items.

Guidewire, which develops software for insurance companies, reported revenue of $97 million, up 43 percent from $67.6 million a year ago. Analysts estimated revenue of $93.10 million for the quarter.

License revenues for the quarter jumped 70 percent, maintenance revenue rose 26 percent, and services revenues advanced 23 percent, year-over-year.

The company's stock closed Tuesday at $46.48, up $0.52 or 1.13%, on a volume of 728 thousand shares. In after hours, the stock gained $5.41 or 11.64%.