Progress Software Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of business software maker Progress Software (Nasdaq: 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.

Interested in more info on Progress Software? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. 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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