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What: Shares of Pegasystems
So what: For the quarter, Pegasystems reported a 9% increase in total sales to $111.2 million while net income actually declined to $0.10 per share from $0.12 in the year prior. Comparatively, Wall Street had been looking for Pegasystems to earn $0.11 on $112.3 million in sales. This marks the second time the company has missed expectations in the past three quarters.
Now what: Not everything was bad news, as Pegasystems reported strong business-process-management gains and noted it had gained some large clientele during the quarter. One final positive: The company also managed to grow its license backlog sequentially. But the concern investors should have is why Pegasystems' profit expectations have been falling for three quarters now. The company hasn't exactly addressed those issues yet and, as such, doesn't appear like it's offering investors a great deal.
Craving more input? Start by adding Pegasystems to your free and personalized watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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