Progress Software's (PRGS, $38.28) Q3 revenue misses estimates
Shares of Progress Software shares declined Friday, after the company reported revenue that fell short of estimates.
The business applications maker’s third-quarter adjusted earnings came in at 75 cents, higher than the year-ago quarter's 55 cents.
Non-GAAP revenue for the quarter increased +25% to $115.5 million, which is lower than the Street estimate of $111 million.
For the fourth quarter, Progress Software has predicted non-GAAP earnings of 73 cents to 75 cents a share on revenue of $116 million to $119 million a share. Analysts had forecasted revenue of $123.2 million.
For the full year, Progress Software is expecting non-GAAP earnings to range between $2.63 and $2.65 a share, and revenue to come in between $425 million and $428 million.
Chief financial officer Paul Jalbert mentioned that the company expects its $225 million acquisition of Ipswich (completed in May) to bring in substantially all of the $15 million of cost synergies by the end of 2019 - which would be well ahead of schedule, according to Jalbert.
PRGS saw its Stochastic Oscillator peaks and leaves the overbought zone
The Stochastic Oscillator for PRGS moved out of overbought territory on April 15, 2025. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 66 similar instances where the indicator exited the overbought zone. In of the 66 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for PRGS turned negative on April 21, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 55 similar instances when the indicator turned negative. In of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PRGS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
PRGS broke above its upper Bollinger Band on April 01, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for PRGS entered a downward trend on March 24, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PRGS's RSI Oscillator exited the oversold zone, of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 22, 2025. You may want to consider a long position or call options on PRGS as a result. In of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
PRGS moved above its 50-day moving average on April 22, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for PRGS crossed bullishly above the 50-day moving average on April 11, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where PRGS advanced for three days, in of 329 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.960) is normal, around the industry mean (30.787). P/E Ratio (33.611) is within average values for comparable stocks, (160.020). Projected Growth (PEG Ratio) (5.614) is also within normal values, averaging (2.707). Dividend Yield (0.013) settles around the average of (0.032) among similar stocks. P/S Ratio (3.393) is also within normal values, averaging (59.678).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PRGS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a developer of real-time data management software
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