Progress Software (NASDAQ:PRGS) Posts Quarterly Earnings Results, Misses Expectations By $0.12 EPS

Key Points

• Progress Software reported quarterly earnings of $1.19 EPS, falling short of the consensus estimate of $1.31 EPS by $0.12.
• The company has updated its FY 2025 guidance, projecting EPS between $5.500 and $5.560, and Q4 2025 guidance ranging from $1.290 to $1.350 EPS.
• Despite the earnings miss, several analysts maintain positive outlooks, with Wedbush setting a price target of $75.00 and retaining an "outperform" rating on the stock.

Progress Software (NASDAQ:PRGS - Get Free Report) issued its quarterly earnings results on Monday. The software maker reported $1.19 EPS for the quarter, missing the consensus estimate of $1.31 by ($0.12), Zacks reports. Progress Software had a net margin of 6.63% and a return on equity of 43.72%. Progress Software updated its FY 2025 guidance to 5.500-5.560 EPS and its Q4 2025 guidance to 1.290-1.350 EPS.

Progress Software Price Performance

Shares of NASDAQ:PRGS traded up $0.59 during midday trading on Monday, reaching $42.61. 3,077,146 shares of the company's stock were exchanged, compared to its average volume of 790,271. The company's 50 day simple moving average is $44.96 and its two-hundred day simple moving average is $53.69. The firm has a market capitalization of $1.84 billion, a PE ratio of 32.53, a price-to-earnings-growth ratio of 1.99 and a beta of 0.68. Progress Software has a 12 month low of $40.29 and a 12 month high of $70.56. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.43 and a current ratio of 0.43.

Wall Street Analyst Weigh In

Several research firms have weighed in on PRGS. Wedbush reiterated an "outperform" rating and issued a $75.00 price objective on shares of Progress Software in a research note on Friday, June 27th. Jefferies Financial Group reiterated a "hold" rating on shares of Progress Software in a research note on Friday, June 27th. DA Davidson upped their price objective on shares of Progress Software from $70.00 to $75.00 and gave the company a "buy" rating in a research note on Tuesday, July 1st. Wall Street Zen lowered shares of Progress Software from a "buy" rating to a "hold" rating in a research note on Saturday, September 13th. Finally, Citigroup dropped their price objective on shares of Progress Software from $64.00 to $57.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 15th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $73.33.

Insider Transactions at Progress Software

In other Progress Software news, Director Rainer Gawlick acquired 1,710 shares of Progress Software stock in a transaction dated Tuesday, August 12th. The stock was bought at an average cost of $43.48 per share, with a total value of $74,350.80. Following the acquisition, the director owned 55,544 shares of the company's stock, valued at approximately $2,415,053.12. The trade was a 3.18% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Anthony Folger sold 5,529 shares of the stock in a transaction dated Tuesday, July 8th. The stock was sold at an average price of $52.97, for a total transaction of $292,871.13. Following the sale, the chief financial officer owned 43,559 shares of the company's stock, valued at $2,307,320.23. This trade represents a 11.26% decrease in their position. The disclosure for this sale can be found here. 3.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Tidal Investments LLC bought a new stake in shares of Progress Software in the second quarter worth $792,000. Group One Trading LLC boosted its position in shares of Progress Software by 8,419.0% in the second quarter. Group One Trading LLC now owns 8,519 shares of the software maker's stock valued at $544,000 after acquiring an additional 8,419 shares during the period. Cerity Partners LLC lifted its position in Progress Software by 25.0% during the second quarter. Cerity Partners LLC now owns 8,173 shares of the software maker's stock worth $522,000 after purchasing an additional 1,636 shares during the period. Tower Research Capital LLC TRC lifted its holdings in shares of Progress Software by 532.8% in the second quarter. Tower Research Capital LLC TRC now owns 7,663 shares of the software maker's stock worth $489,000 after acquiring an additional 6,452 shares during the last quarter. Finally, Daiwa Securities Group Inc. bought a new position in shares of Progress Software in the second quarter worth about $437,000.

Progress Software Company Profile

Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers.

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