Progress Software Earnings Preview

On Thursday, June 24, Progress Software PRGS will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Progress Software earnings will be near $0.72 per share on sales of $121.86 million, according to analysts. Progress Software EPS in the same period a year ago totaled $0.63. Sales were $102.50 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Thursday, earnings would be up 14.29%. Revenue would be up 18.88% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares of Progress Software are up 21.29%.

Do not be surprised to see the stock move on comments made during its conference call. Progress Software is scheduled to hold the call at 17:00:00 ET and can be accessed here.