NOW - Why Is ServiceNow (NOW) Stock Up 12% Today?
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ServiceNow (NYSE:NOW) stock is climbing higher on Thursday after releasing its earnings report for the third quarter of 2022.
The positive news for NOW stock starts with its adjusted earnings per share of $1.96. That’s above the $1.85 per share that Wall Street was expecting for the quarter. It’s also better than the $1.55 per share reported in the third quarter of 2021.
To go along with that, ServiceNow reported revenue of $1.83 billion. Unfortunately, that misses analysts’ revenue estimate of $1.85 billion. Even if it is a 21% increase year-over-year from $1.51 billion.
Brad Zelnick, an analyst for Deutsche Bank, pointed to ServiceNow’s federal business as the reason for strong Q3 results while speaking with Investor’s Business Daily.
“Management reiterated that they continue to operate in an uncertain market backdrop similar to what they reported at the end of last quarter. However, execution was clearly solid and likely helped by an all-time record quarter in their U.S. federal business which we believe is less economically sensitive.”
NOW Also Offers Q4 Guidance
The latest earnings report includes ServiceNow’s expectations for Q4 2022. That includes subscription revenue ranging from $1.834 billion to $1.839 billion. That would represent a 20% to 21% growth compared to the fourth quarter of 2021.
This has shares of NOW stock seeing heavy trading on Thursday. As of this writing, more than 3 million shares of the stock have changed hands. That’s nearly double the company’s daily average trading volume of about 1.7 million shares.
NOW stock is up 12.4% as of Thursday afternoon.
Investors looking for more of the latest stock market news will want to keep reading!
We’ve got all of the hottest stock market news traders need to know about on Thursday! Among that is what has shares of Tesla (NASDAQ:TSLA), Altra Industrial Motion (NASDAQ:AIMC), and Credit Suisse (NYSE:CS) stock moving today. You can find out all about these matters at the links below!
More Thursday Stock Market News
- Should TSLA Stock Fans Give Up on Driverless Cars?
- Why Is Altra Industrial (AIMC) Stock Up 48% Today?
- Credit Suisse (CS) Stock Falls 19% on Layoffs, $4 Billion Loss
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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