Progress Software Beats on Both Top and Bottom Lines
Progress Software (NAS: PRGS) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q1), Progress Software beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Progress Software tallied revenue of $124.4 million. The six analysts polled by S&P Capital IQ foresaw net sales of $120.4 million on the same basis. GAAP reported sales were 7.3% lower than the prior-year quarter's $134.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.28. The five earnings estimates compiled by S&P Capital IQ averaged $0.25 per share on the same basis. GAAP EPS of $0.12 for Q1 were 59% lower than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 82.6%, 240 basis points worse than the prior-year quarter. Operating margin was 9.7%, 1,300 basis points worse than the prior-year quarter. Net margin was 6.0%, 930 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $125.9 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $521.3 million. The average EPS estimate is $1.26.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 40 members out of 49 rating the stock outperform, and nine members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Progress Software a green thumbs-up, and three 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 $22.80.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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