Progress Software Down 1.71% To $51.75 After Earnings Beat

Progress Software Corp (PRGS) reported better than expected earnings this afternoon for Q1 2024.

Progress Software's earnings came in at an EPS of $1.25 per share, 10.00% higher than estimates for an EPS of $1.14 per share. The firm's earnings are up 5% since reporting $1.19 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Analyst projections for Progress Software revenue came in at a consensus of $181.9 million. First-Quarter revenues surpassed estimates for $184.7 million by $2.8 million (2%). The company achieved 12% growth year-over-year compared to the firm's revenue of $165.6 million from the year-ago quarter. The lower earnings growth relative to revenue signals Progress Software has not been able to improve its profit margin.

The stock is down 1.71% to $51.75 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Progress Software has performed a little below average during the past few months. Before the report, Progress Software received a Long-Term Technical Rank by InvestorsObserver of 29, putting it in the bottom half of stocks. The firm set a 52-week low on November 2, 2023 at $49.02 and set a 52-week high on August 29, 2023 at $62.34.

Progress Software Corporation is a provider of cloud-based security solutions to large- and mid-sized organizations in a wide range of industries. The firm operates in three segments: OpenEdge, which offers development software for building multi-language applications; Data Connectivity and Integration, which focuses on data integration components of its cloud offerings; and Application Development and Deployment, which focuses on growing application development assets for customers. The company derives revenue from perpetual licenses to its products, but some products also use term licensing models. Its cloud-based offerings use a subscription-based model. A majority of the firm's revenue is generated in the United States, Europe, the Middle East, and Africa (EMEA).