Does The Street Have Progress Software Figured Out?

Progress Software (Nasdaq: PRGS  ) is expected to report Q1 earnings on March 27. 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 Progress Software's revenues will shrink -30.8% and EPS will compress -17.9%.

The average estimate for revenue is $86.1 million. On the bottom line, the average EPS estimate is $0.23.

Revenue details
Last quarter, Progress Software booked revenue of $121.7 million. GAAP reported sales were 92% lower than the prior-year quarter's -$25.7 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.23. GAAP EPS of $0.57 for Q4 were 217% higher than the prior-year quarter's $0.18 per share.

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 -588.7%, much worse than the prior-year quarter. Operating margin was -1138.4%, much worse than the prior-year quarter. Net margin was -1844.6%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $344.9 million. The average EPS estimate is $1.26.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 45 members out of 53 rating the stock outperform, and eight members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Progress Software a green thumbs-up, and two 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 $24.07.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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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