We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pegasystems' (PEGA) Q2 Earnings Fall Y/Y, Revenues Miss
Read MoreHide Full Article
Pegasystems Inc. (PEGA - Free Report) reported second-quarter 2017 earnings of 15 cents per share that declined 21% year over year. Including stock-based compensation, earnings were 14 cents per share.
The Zacks Consensus Estimate was pegged at 8 cents per share.
Non-GAAP total revenue increased 4% to $197.98 million in the reported quarter but missed the Zacks Consensus Estimate of $207 million.
Notably, Pegasystems stock has gained 44.6% year to date, substantially outperforming the 22.3% rally of the industry it belongs to.
Top-Line Details
Software License revenues decreased 13.6% from the year-ago quarter to $61 million. Maintenance revenues increased 8% to almost $59.6 million, while services advanced almost 22.5% to $77.4 million.
Total license (term and perpetual) and cloud backlog increased 32% from the year-ago quarter to $518 million. This was achieved with one Whale – customers with license and cloud commitment of greater than $10 million – in the first half of 2017.
Notably, the adoption of Pegasystems’ solutions continue with Pivotal, Microsoft (MSFT - Free Report) Azure and Amazon (AMZN - Free Report) Web Services. Management noted that almost 49% of the full-year revenue guidance has been achieved in the first half of the year, resulting in a balance between the first and second halves.
Pegasystems Inc. Price, Consensus and EPS Surprise
Gross margin decreased 250 basis points (bps) to 65.7% in the reported quarter.
Reported operating expenses as a percentage of revenues remained flat at 64.8%. The increase in sales and marketing and research and development expenses was offset by the absence of restructuring and acquisition related costs.
Operating margin decreased 250 bps from the year-ago quarter to 0.9%.
Balance Sheet & Cash Flow
Cash, cash equivalents, and marketable securities were $121.6 million as of Jun 30, 2017 compared with $64.3 million as of Jun 30, 2016.
Guidance
For full-year 2017, revenues are still projected to be approximately $860 million, up 15% over 2016 levels. Non-GAAP earnings are anticipated to be approximately $1.00 per share.
Zacks Rank and Stocks to Consider
Currently, Pegasystems has a Zacks Rank #3 (Hold).
Long-term earnings growth rate for Alibaba is projected to be 28.97%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Pegasystems' (PEGA) Q2 Earnings Fall Y/Y, Revenues Miss
Pegasystems Inc. (PEGA - Free Report) reported second-quarter 2017 earnings of 15 cents per share that declined 21% year over year. Including stock-based compensation, earnings were 14 cents per share.
The Zacks Consensus Estimate was pegged at 8 cents per share.
Non-GAAP total revenue increased 4% to $197.98 million in the reported quarter but missed the Zacks Consensus Estimate of $207 million.
Notably, Pegasystems stock has gained 44.6% year to date, substantially outperforming the 22.3% rally of the industry it belongs to.
Top-Line Details
Software License revenues decreased 13.6% from the year-ago quarter to $61 million. Maintenance revenues increased 8% to almost $59.6 million, while services advanced almost 22.5% to $77.4 million.
Total license (term and perpetual) and cloud backlog increased 32% from the year-ago quarter to $518 million. This was achieved with one Whale – customers with license and cloud commitment of greater than $10 million – in the first half of 2017.
Notably, the adoption of Pegasystems’ solutions continue with Pivotal, Microsoft (MSFT - Free Report) Azure and Amazon (AMZN - Free Report) Web Services. Management noted that almost 49% of the full-year revenue guidance has been achieved in the first half of the year, resulting in a balance between the first and second halves.
Pegasystems Inc. Price, Consensus and EPS Surprise
Pegasystems Inc. Price, Consensus and EPS Surprise | Pegasystems Inc. Quote
Operating Details
Gross margin decreased 250 basis points (bps) to 65.7% in the reported quarter.
Reported operating expenses as a percentage of revenues remained flat at 64.8%. The increase in sales and marketing and research and development expenses was offset by the absence of restructuring and acquisition related costs.
Operating margin decreased 250 bps from the year-ago quarter to 0.9%.
Balance Sheet & Cash Flow
Cash, cash equivalents, and marketable securities were $121.6 million as of Jun 30, 2017 compared with $64.3 million as of Jun 30, 2016.
Guidance
For full-year 2017, revenues are still projected to be approximately $860 million, up 15% over 2016 levels. Non-GAAP earnings are anticipated to be approximately $1.00 per share.
Zacks Rank and Stocks to Consider
Currently, Pegasystems has a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Alibaba Group (BABA - Free Report) , having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for Alibaba is projected to be 28.97%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>