Progress Software (Nasdaq: PRGS) reported earnings on June 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 31 (Q2), Progress Software met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.

Margins shrank across the board.

Revenue details
Progress Software notched revenue of $114.6 million. The five analysts polled by S&P Capital IQ expected to see revenue of $115.8 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $134.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.21. The four earnings estimates compiled by S&P Capital IQ averaged $0.20 per share. GAAP EPS were -$0.03 for Q2 compared to $0.26 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 80.7%, 280 basis points worse than the prior-year quarter. Operating margin was 4.1%, 1,700 basis points worse than the prior-year quarter. Net margin was -1.7%, 1,500 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $114.0 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $480.4 million. The average EPS estimate is $1.21.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 45 members out of 54 rating the stock outperform, and nine members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Progress Software a green thumbs-up, and four 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 $26.83.

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