Guidewire Profit Tops View, Outlook Weak; CFO Karen Blasing Retires

(RTTNews) - Guidewire Software Inc (GWRE) on Monday reported second-quarter net earnings of $4 million or $0.06 per share compared with $3.3 million or $0.05 per share last year.

Excluding stock-based compensation expenses and other one-time items, adjusted earnings for the quarter were $0.17 per share compared with $0.16 per share a year ago.

Guidewire, which provides software for the insurance industry, said its revenues for the quarter climbed to $89.4 million from $83.5 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.11 per share on revenues of $86.2 million for the quarter. Analysts' estimates typically exclude special items.

For the third quarter, the company expects adjusted earnings of $0.02 to $0.06 per share on revenues of $76.5 million to $84 million. Analysts expect earnings of $0.05 per share on revenues of $85.6 million.

For the full year 2015, Guidewire expects adjusted earnings of $0.51 to $0.58 per share on revenues of $362.7 million to $378.4 million. It earlier expected earnings of $0.43 to $0.50 per share on revenues of $366.7 million to $382.4 million.

Analysts expect earnings of $0.49 per share on revenues of $376.8 million for 2015.

Guidewire also announced the retirement of Karen Blasing, its chief financial officer. Blasing will be replaced by Richard Hart, who was one of the lead bankers in the company's 2012 IPO. Hart previously spent 14 years at Deutsche Bank, where he was a managing director. Blasing will remain with the company for the next several months to ensure a smooth transition.