Progress Software (NASDAQ:PRGS) Updates FY 2025 Earnings Guidance

Key Points

• Progress Software has updated its FY 2025 earnings guidance, projecting earnings per share between $5.500 and $5.560, which exceeds the consensus estimate of $4.890.
• The company also provided revenue guidance of $975.0 million to $981.0 million, surpassing the consensus estimate of $967.1 million.
• Progress Software's share price rose by $0.60 on Monday, closing at $42.62, with trading volume significantly above its average.

Progress Software (NASDAQ:PRGS - Get Free Report) updated its FY 2025 earnings guidance on Monday. The company provided earnings per share guidance of 5.500-5.560 for the period, compared to the consensus earnings per share estimate of 4.890. The company issued revenue guidance of $975.0 million-$981.0 million, compared to the consensus revenue estimate of $967.1 million. Progress Software also updated its Q4 2025 guidance to 1.290-1.350 EPS.

Progress Software Price Performance

Shares of PRGS stock traded up $0.60 on Monday, reaching $42.62. 2,798,612 shares of the company were exchanged, compared to its average volume of 782,592. The company has a market cap of $1.84 billion, a price-to-earnings ratio of 32.53, a P/E/G ratio of 1.99 and a beta of 0.68. The business has a 50-day moving average price of $44.96 and a 200 day moving average price of $53.69. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.43 and a current ratio of 0.43. Progress Software has a 1 year low of $40.29 and a 1 year high of $70.56.

Progress Software (NASDAQ:PRGS - Get Free Report) last announced its quarterly earnings data on Monday, June 30th. The software maker reported $1.40 earnings per share for the quarter, beating analysts' consensus estimates of $1.30 by $0.10. Progress Software had a net margin of 6.63% and a return on equity of 43.72%. The business had revenue of $237.36 million for the quarter, compared to analyst estimates of $237.23 million. During the same period last year, the business earned $1.09 EPS. The company's revenue was up 35.6% on a year-over-year basis. Equities research analysts forecast that Progress Software will post 4.01 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of research analysts have recently issued reports on PRGS shares. Jefferies Financial Group restated a "hold" rating on shares of Progress Software in a research report on Friday, June 27th. Guggenheim reiterated a "buy" rating and issued a $83.00 price objective on shares of Progress Software in a research report on Friday, June 27th. Citigroup cut 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 report on Tuesday, July 15th. Wedbush reiterated an "outperform" rating and issued a $75.00 price objective on shares of Progress Software in a research report on Friday, June 27th. Finally, DA Davidson lifted their price objective on shares of Progress Software from $70.00 to $75.00 and gave the company a "buy" rating in a research report on Tuesday, July 1st. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Progress Software presently has an average rating of "Moderate Buy" and a consensus price target of $73.33.

Insider Activity at Progress Software

In other Progress Software news, Director Rainer Gawlick bought 1,710 shares of the firm's stock in a transaction on 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 completion of the transaction, the director directly 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 position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director David Krall purchased 5,125 shares of Progress Software stock in a transaction on Wednesday, July 23rd. The stock was bought at an average cost of $48.90 per share, with a total value of $250,612.50. Following the transaction, the director directly owned 100,090 shares of the company's stock, valued at approximately $4,894,401. The trade was a 5.40% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 3.60% of the company's stock.

Institutional Investors Weigh In On Progress Software

Hedge funds and other institutional investors have recently modified their holdings of the stock. Osaic Holdings Inc. grew its holdings in shares of Progress Software by 183.0% in the 2nd quarter. Osaic Holdings Inc. now owns 985 shares of the software maker's stock worth $62,000 after purchasing an additional 637 shares during the last quarter. State of Wyoming bought a new position in Progress Software in the 2nd quarter worth approximately $137,000. Caxton Associates LLP acquired a new stake in shares of Progress Software during the 2nd quarter worth approximately $311,000. Public Sector Pension Investment Board raised its position in shares of Progress Software by 5.5% during the 2nd quarter. Public Sector Pension Investment Board now owns 166,241 shares of the software maker's stock valued at $10,613,000 after acquiring an additional 8,601 shares during the last quarter. Finally, Tower Research Capital LLC TRC raised its position in shares of Progress Software by 532.8% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,663 shares of the software maker's stock valued at $489,000 after acquiring an additional 6,452 shares during the last quarter.

About Progress Software

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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