Progress Software (Nasdaq: PRGS) reported earnings on Sep. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Aug. 31 (Q3), Progress Software missed estimates on revenues and beat expectations on earnings per share.

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

Gross margins increased, operating margins grew, net margins dropped.

Revenue details
Progress Software reported revenue of $107.2 million. The seven analysts polled by S&P Capital IQ expected a top line of $112.4 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $128.3 million.

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

EPS details
EPS came in at $0.31. The six earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. GAAP EPS of $0.09 for Q3 were 31% lower than the prior-year quarter's $0.13 per share.

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 84.5%, 230 basis points better than the prior-year quarter. Operating margin was 15.7%, 410 basis points better than the prior-year quarter. Net margin was 5.4%, 130 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $125.8 million. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $476.9 million. The average EPS estimate is $1.08.

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 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Progress Software a green thumbs-up, and five 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 $24.86.

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