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Progress Software (PRGS) to Post Q1 Earnings: What's in Store?

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Progress Software (PRGS - Free Report) is slated to release its first-quarter fiscal 2023 results on Mar 28.

For the to-be-reported quarter, Progress anticipates non-GAAP revenues in the range of $157-$161 million. Non-GAAP earnings are anticipated between $1.04 and $1.08 per share.

The Zacks Consensus Estimate for fiscal first-quarter earnings has been steady at $1.04 per share over the past 30 days, suggesting 7.22% growth from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $158.7 million, indicating 7.58% year-over-year growth.
 

Progress Software Corporation Price and EPS Surprise

 

Progress Software Corporation Price and EPS Surprise

Progress Software Corporation price-eps-surprise | Progress Software Corporation Quote

 

Progress’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 7.36% on average.

Factors to Consider

Progress has been benefiting from a strong portfolio with a robust adoption rate for its Chef, OpenEdge, DataDirect and Sitefinity solutions. In the fiscal fourth quarter, the net dollar retention rate was more than 101%.

Strong contributions from acquisitions like Kemp are expected to have driven top-line growth.

The MarkLogic acquisition, which was completed in the fiscal first quarter, strengthens Progress’ portfolio as well as expands its customer base. Leveraging MarkLogic’s multi-model NoSQL database, along with robust semantic metadata management and AI capabilities, Progress will be able to deliver solutions that will help its customers derive significant value from complex data.

However, the fiscal first quarter bottom line is expected to reflect headwinds related to higher interest rates and a challenging macroeconomic environment.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Progress has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Amphenol (APH - Free Report) has an Earnings ESP of +2.59% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

APH shares have gained 3.1% in the past year. Amphenol is set to report first-quarter 2023 results on Apr 26.

Meta Platforms (META - Free Report) has an Earnings ESP of +5.64% and a Zacks Rank #1.

META shares have declined 5.9% in the past year. Meta Platforms is likely to report its first-quarter 2023 results on Apr 26.

Intel (INTC - Free Report) has an Earnings ESP of +5.17% and a Zacks Rank #3.

INTC shares have declined 43.1% in the past year. Intel is likely to report its first-quarter 2023 results on Apr 27.


Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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