Insights into Pegasystems's Upcoming Earnings

Pegasystems PEGA is set to give its latest quarterly earnings report on Tuesday, 2025-04-22. Here's what investors need to know before the announcement.

Analysts estimate that Pegasystems will report an earnings per share (EPS) of $0.50.

Anticipation surrounds Pegasystems's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

Last quarter the company beat EPS by $0.14, which was followed by a 19.62% drop in the share price the next day.

Here's a look at Pegasystems's past performance and the resulting price change:

Market Performance of Pegasystems's Stock

Shares of Pegasystems were trading at $68.34 as of April 18. Over the last 52-week period, shares are up 12.66%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Pegasystems

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Pegasystems.

Analysts have provided Pegasystems with 10 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $99.8, suggesting a potential 46.03% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of CCC Intelligent Solutions, Clearwater Analytics Hldg and Vertex, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for CCC Intelligent Solutions, with an average 1-year price target of $12.57, suggesting a potential 81.61% downside.
• Analysts currently favor an Outperform trajectory for Clearwater Analytics Hldg, with an average 1-year price target of $36.6, suggesting a potential 46.44% downside.
• Analysts currently favor an Buy trajectory for Vertex, with an average 1-year price target of $51.3, suggesting a potential 24.93% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary presents essential metrics for CCC Intelligent Solutions, Clearwater Analytics Hldg and Vertex, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Pegasystems ranks in the middle for revenue growth among its peers. It is at the bottom for gross profit and return on equity.

All You Need to Know About Pegasystems

Founded in 1983, Pegasystems provides a suite of solutions for customer engagement and business process management. The company's key offering is the Pega Infinity platform, which combines business process management with customer relationship management applications. The company focuses on enterprise-size customers in the financial, insurance, and healthcare industries.

Financial Milestones: Pegasystems's Journey

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Positive Revenue Trend: Examining Pegasystems's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.5% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Pegasystems's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 24.26%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Pegasystems's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 22.5% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Pegasystems's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.12% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Pegasystems's debt-to-equity ratio surpasses industry norms, standing at 0.94. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Pegasystems visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.