Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Progress Software Corporation Stock Popped Today

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 Progress Software Corporation (NASDAQ: PRGS  ) rose nearly 12% early Friday, then settled to close up around 8% after the business applications development specialist turned in solid fiscal second-quarter results.

So what: Though quarterly revenue fell around 1%, to $80.8 million, improving operating margin helped Progress Software's adjusted earnings per share climb by more than a third, to $0.37. Analysts, on average, were expecting earnings of only $0.34 per share on sales of $78.46 million.

In addition, the market was happy with Progress Software's revised guidance. For the current quarter, revenue is expected to be between $78 million and $81 million, which should result in adjusted earnings per share between $0.32 and $0.35. By comparison, analysts were modeling fiscal Q3 earnings of $0.33 per share on sales of $79.61 million.

For the fiscal year ending Nov. 30, 2014, Progress Software now expects revenue between $331 million and $338 million, with adjusted earnings per share between $1.38 and $1.45. Wall Street was looking for fiscal full-year earnings of $1.38 per share on sales of $326.28 million.

Now what: Despite its lack of top-line growth, Progress Software has done an admirable job of maintaining its bottom line as it keeps costs in check. Though I'm not personally intrigued enough to dive in today, shares do look reasonably priced at around 17 times the midpoint of this year's expected earnings. In the end, I can't blame the market for bidding up Progress Software stock today.

Warren Buffett: This new technology is a "real threat"
If Progress Software doesn't satisfy your appetite for growth, don't worry. At the recent Berkshire Hathaway annual meeting, Warren Buffett admitted another emerging technology is threatening his biggest cash cow. And while Buffett shakes in his billionaire boots, only a few investors are embracing this new market, which experts say will be worth more than $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping into one company that could get you the biggest piece of the action. Click here to access a FREE investor alert on the company we're calling the "brains behind" the technology.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3011356, ~/Articles/ArticleHandler.aspx, 8/29/2015 1:15:53 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 15 hours ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 3:59 PM
PRGS $27.46 Up +0.32 +1.18%
Progress Software… CAPS Rating: *****