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What: Shares of Progress Software (NAS: PRGS) have plunged today by as much as 14% after its CEO is resigning and issued a warning on its revenue guidance.
So what: Jay Bhatt is stepping down as CEO in order to "pursue another leadership opportunity," effective in December, while the board has begun searching for a new CEO. Phil Pead has been appointed the executive chairman, effective immediately. The company continues to work through its strategic initiatives to reduce costs.
Now what: Shares had jumped after last quarter's earnings, but have given up all those gains and then some with today's announcement that Progress may see "some slippage in revenue growth" as a result of the CEO transition. At the time, it expected revenue growth this quarter between negative 2% and positive 1%, but the company is now pulling back on that guidance by "not reaffirming" its outlook. Some analysts think there's more going on within the company than Progress is letting on.
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The article Why Progress Software Shares Plunged originally appeared on Fool.com.
Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.