Progress Software Shares Plunged: What You Need to Know
What: Shares of business software maker Progress Software (NAS: PRGS) are plunging today, down by 14% at the low, after the company reported fourth-quarter earnings last night.
So what: Revenue added up to $136.3 million and non-GAAP earnings per share ended up at $0.34. Both figures came in better than consensus estimates, which called for $133.4 million in sales and $0.33 per share profit.
Now what: Progress CEO Jay Bhatt said the results reflect challenges that the company is facing in its ongoing transformation. Next quarter's guidance is what's rattling shareholders. First-quarter sales are expected to fall 10% year over year to roughly $120 million, while diluted earnings per share are supposed to drop 40% to $0.25. The outlook is short of the $132 million revenue and $0.38 EPS that the market is looking for.
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