Are You Expecting This from Pegasystems?
Pegasystems (NAS: PEGA) is expected to report Q1 earnings on May 8. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Pegasystems's revenues will increase 6.6% and EPS will contract -8.7%.
The average estimate for revenue is $118.5 million. On the bottom line, the average EPS estimate is $0.21.
Revenue details
Last quarter, Pegasystems reported revenue of $143.8 million. GAAP reported sales were 25% higher than the prior-year quarter's $115.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at $0.65. GAAP EPS were $0.52 for Q4 versus -$0.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 73.4%, much better than the prior-year quarter. Operating margin was 19.3%, much better than the prior-year quarter. Net margin was 14.2%, much better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $509.0 million. The average EPS estimate is $1.18.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 155 members out of 175 rating the stock outperform, and 20 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Pegasystems a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pegasystems is outperform, with an average price target of $25.33.
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The article Are You Expecting This from Pegasystems? originally appeared on Fool.com.
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. The Motley Fool recommends Pegasystems. 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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