Progress Software advances after results beat, raised annual EPS forecast

Progress Software

01/04/2025 12:21

** Progress Software's PRGS.O shares up 7.9% premarket to $55.60 after qtrly results top Wall Street's expectations and co boosts annual earnings outlook

** Burlington, Massachusetts-based AI-powered software late Mon posted fiscal Q1 rev of $238 mln, up 29% y/y, and adj EPS of $1.31, both above LSEG estimates of $235.6 mln and $1.06/sh

** Co said now expects FY25 adj EPS of $5.25-$5.37, up from prior forecast of $5.00-$5.12, topping consensus, and stuck with rev guidance of $958-$970 mln

** Increased EPS guidance reflects strong start to the year, due to steady demand and well-controled expenses, co said

** Guggenheim and D.A. Davidson pointed to ShareFile integration tracking ahead of schedule, which should drive PRGS to achieve targeted operating margins of 40%

** 5 of 7 brokerages rate PRGS "strong buy" or "buy", 2 rate "hold', per LSEG; median PT of $75 implies ~46% upside to stock's last close

** Through Mon, stock down 21% YTD after 20% gain in 2024

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))