What Analysts Expect from ServiceNow in Q3 2018

Revenue of $659 million

ServiceNow (NOW) is expected to announce its third-quarter earnings on October 24. Analysts expect revenue of $659.1 million compared to $498 million in Q3 2017, indicating a year-over-year growth of 32.3%.

Its non-GAAP EPS is expected to rise 58% to $0.60 from $0.38 in the third quarter. Analysts have a low EPS estimate of $0.52 and a high estimate of $0.70.

What Analysts Expect from ServiceNow in Q3 2018

ServiceNow beat estimates in three of the last four quarters

As you can see in the above chart, ServiceNow has managed to beat average analyst earnings and revenue estimates in three of the last four quarters. It reported EPS of $0.49 in the second quarter of 2018, which was 14% above the estimate of $0.43.

Its EPS of $0.56 in the first quarter of 2018 was 51.4% higher than the estimate of $0.37. In Q3 2017, its EPS of $0.38 was 19% above the estimate of $0.32. It met the average analyst earnings estimate of $0.35 in Q4 2017.

In this series, we’ll look at ServiceNow’s estimated revenue growth in 2018 and beyond. We’ll also look at its valuations and other important metrics.