Progress Software Stock Jumps On Q3 Earnings: Revenue Beat, EPS Beat, Raised Guidance And More

Progress Software Corp PRGS shares are trading higher in Tuesday’s after-hours session after the company reported better-than-expected financial results for the third quarter.

• Q3 Revenue: $178.69 million, versus estimates of $175.94 million

• Q3 EPS: $1.26, versus estimates of $1.14

Total revenue was up 2% on a year-over-year basis. Annualized recurring revenue totaled $582 million, “relatively flat” on a constant currency basis. Operating margin was 23%, while adjusted operating margin was 41%.

Progress Software said it ended the quarter with $232.7 million in cash and cash equivalents.

“This is a very exciting time for Progress. Our Q3 results were ahead of our guidance, and I am extremely pleased with our execution during the quarter,” said Yogesh Gupta, CEO of Progress.

“What’s more exciting is our proposed acquisition of ShareFile, which we announced two weeks ago. We expect the deal to close before the end of our fiscal year, and we are eager to begin the work of integrating ShareFile’s people and products into the Progress team.”

See Also: Stitch Fix Stock Falls After Q4 Results: Here’s Why

Outlook: Progress Software expects fourth-quarter adjusted revenue to be between $207 million and $217 million. The company anticipates fourth-quarter adjusted earnings of $1.15 to $1.25 per share.

Progress also raised its full-year guidance. The company now sees full-year adjusted revenue in the range of $745 million to $755 million, up from a prior forecast of $725 million to $735 million. The company also raised its full-year earnings outlook to a range of $4.75 to $4.85 per share, up from a prior outlook of $4.70 to $4.80 per share.

According to Benzinga Pro, analysts are currently anticipating full-year revenue of $730.02 million and full-year earnings of $4.75 per share.

Management will hold a conference call to discuss these results at 5 p.m. ET.

PRGS Price Action: At publication time, Progress Software shares were up 4.29% at $59.60 in after-hours trading, per Benzinga Pro.

Photo: Shutterstock.