Progress Software Misses Where it Counts

Progress Software (Nasdaq: PRGS  ) reported earnings on Jan. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q4), Progress Software beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew significantly.

Margins contracted across the board.

Revenue details
Progress Software tallied revenue of $121.7 million. The six analysts polled by S&P Capital IQ predicted revenue of $113.3 million on the same basis. GAAP reported sales were 101% lower than the prior-year quarter's $136.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.23. The seven earnings estimates compiled by S&P Capital IQ averaged $0.33 per share. GAAP EPS of $0.57 for Q4 were 217% higher than the prior-year quarter's $0.18 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was -588.7%, 67,230 basis points worse than the prior-year quarter. Operating margin was -1092.3%, 111,200 basis points worse than the prior-year quarter. Net margin was -1844.6%, 185,320 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $86.4 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $344.9 million. The average EPS estimate is $1.26.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 48 members out of 56 rating the stock outperform, and eight members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Progress Software a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Progress Software is outperform, with an average price target of $24.07.

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