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What Do Analysts Expect from ServiceNow in Q1 2019?

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Revenue growth estimated at 30% in Q1 2019

High growth tech company ServiceNow (NOW) is set to announce its first-quarter earnings results on April 24, 2019. Analysts expect the company to post sales of $766.22 million in the quarter, a rise of 30% YoY compared to its sales of $589.22 million in the first quarter of 2018.

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Earnings growth expected to fall

Despite impressive revenue growth estimates, ServiceNow’s non-GAAP (generally accepted accounting principles) EPS are expected to fall by 3.6% YoY from $0.56 in the first quarter of 2018 to $0.54 in the first quarter of 2019.

ServiceNow has managed to beat analysts’ earnings estimates in each of the last four quarters. The company posted EPS of $0.77 in the fourth quarter of 2018, 22% higher than analysts’ estimate of $0.63. It posted EPS of $0.68 in the third quarter of 2018, 13% higher than the estimate of $0.60.

As the chart above shows, ServiceNow exceeded its second-quarter earnings estimate of $0.43 with reported earnings of $0.49. The company also exceeded analysts’ consensus earnings estimate of $0.37 by 51% with EPS of $0.56 in the first quarter of 2018.

Driven by the company’s earnings beat, ServiceNow stock has gained 39.4% in the last 12 months, easily outperforming broader indexes.

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