Pegasystems (Nasdaq: PEGA ) is expected to report Q4 earnings around Feb. 22. 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 expand 6.7% and EPS will grow 106.3%.
The average estimate for revenue is $123.1 million. On the bottom line, the average EPS estimate is $0.33.
Last quarter, Pegasystems reported revenue of $101.7 million. GAAP reported sales were 6.4% higher than the prior-year quarter's $95.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.13. GAAP EPS were -$0.01 for Q3 versus $0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 62.9%, 670 basis points better than the prior-year quarter. Operating margin was 0.4%, 270 basis points better than the prior-year quarter. Net margin was -0.3%, 550 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $440.9 million. The average EPS estimate is $0.78.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 155 members out of 174 rating the stock outperform, and 19 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Pegasystems 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 Pegasystems is hold, with an average price target of $31.10.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Pegasystems makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.