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Earnings Results

June 28, 2022, 4:38 p.m. EDT

Progress Software stock ticks lower as forecast falls short

By Wallace Witkowski

Progress Software Corp. shares declined in the extended session Tuesday after the business software company topped Wall Street estimates for the past quarter but fell short of estimates for the current one.

Progress  (NAS:PRGS) shares fell 2% after hours, following a 4% decline in the regular session to close at $48.80.

The company reported fiscal second-quarter net income of $29.1 million, or 66 cents a share, compared with $13.6 million, or 30 cents a share, in the year-ago period.

Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.04 a share, compared with 82 cents a share in the year-ago period. Analysts surveyed by FactSet had forecast 95 cents a share.

Revenue rose to $148.7 million from $122.5 million in the year-ago quarter, while analysts had forecast $146.7 million.

“Despite the recent challenges in the global economy, our business continues to perform well across virtually all product lines,” said Anthony Folger, Progress Software chief executive, in a statement.

For the fiscal third quarter, the company expects earnings of 96 cents to 98 cents a share on revenue of $147 million to $150 million. Analysts expect revenue of $1.10 a share on revenue of $161.9 million.

The company slightly improved its earnings outlook for the year, calling for earnings of $4.05 to $4.11 a share, up from a previous estimate of $4.01 to $4.09 a share, with an unchanged sales forecast of $609 million to $617 million. Analysts estimate earnings of $4.06 a share on revenue of $613.5 million.

Link to MarketWatch's Slice.