Progress Software (PRGS) Shares Hammered after Revenue Miss
Shares of the Progress Software Corporation (PRGS) were off -3.83 or -14.94 percent to $21.80 per share in Friday’s premarket after the company announced its fiscal third quarter earnings results yesterday after the market close. Progress Software stock closed at $25.63, down -0.20 or -0.77 percent in Thursday’s regular trading session.
Based in Bedford, Massachusetts, Progress Software Corporation was founded by Joseph W.
Progress Software is best known for its OpenEdge ABL and can manage business applications on any device to any data source on premise or in the cloud. The company is separated into three main units: Application Development, Data Integration and OpenEdge. Progress Software products and technology are used at more than 60,000 organizations in 140 countries including 90 percent of Fortune 500 companies.
Progress Software reported a net quarterly loss for its fiscal third quarter of -$4.1 million or -0.08 per share versus net income of $11.1 million or $0.22 per share in the same period one year ago. Non-GAAP earnings were $0.39 per share on $31. 7 million in income compared to $0.39 per share on $29.6 million in income for last year’s third quarter. Non-GAAP revenue came to $100.7 million versus $79.3 million last year. The analyst consensus was for $0.36 per share on $103.0 million in revenue.
Phil Pead, President and Chief Executive Officer of Progress stated in the post release earnings conference that, “Through OpenEdge and DataDirect, we have been very successful in providing tools for developers to create and connect to these systems of record. These key applications house critical business information, and we believe they will remain in place for years to come, and we will continue to invest in these solutions. While we are confident that systems of record will continue to grow, which creates a solid foundation for us, our opportunity for accelerated growth and in acquiring net new customers lies in Next-Generation application development.”
Guidance for the company’s fourth quarter has adjusted earnings of $0.47 to $0.51 per share on adjusted revenue of $113 million to $118 million. For the full year, Progress Software is projecting adjusted earnings per share of $1.51 to $1.55 versus a previous forecast of $1.45 to $1.52 on revenue between $410 million and $415 million compared to a previous estimate of $415 million to $425 million. The company is expecting a year over year currency impact of between -$0.14 and $0.15 per share, a penny more than previously forecast.
Along with the earnings report, Progress Software announced a new $100 million share buyback program, increasing their authorization to $115 million in total share repurchases. Progress Software stock had been hit hard in yesterday’s aftermarket, falling as much as -16 percent at one point. The selloff seems to be carrying over in this morning’s premarket and could extend in this morning’s regular trading session.
Other News About PRGS
Progress Streamlines Operations by Enhancing Business Integration and Collaboration to Capitalize on Expanding Market Opportunities
Announcement follows the appointment of Jerry Rulli as Chief Operating Officer in July.
Progress Evolves Telerik DevCraft with New Controls and Strengthens Desktop, Web and Mobile Development for .NET Community
New releases introduce significant upgrades for web, desktop and mobile applications development.
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