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Progress Software (PRGS) to Report Q4 Earnings: What's in Store?

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Progress Software (PRGS - Free Report) is set to report fourth-quarter 2020 results on Jan 14.

For the quarter, revenues are expected between $125 million and $129 million. Earnings are expected in the 76-79 cents per share range. Favorable forex is expected to boost quarterly revenues by roughly $1 million, while the impact on earnings is not meaningful.

The Zacks Consensus Estimate for fourth-quarter earnings stayed at 77cents per share over the past 30 days and indicates 2.5% decline from the previous quarter’s reported figure.

The consensus mark for revenues is pegged at $127.2 million, indicating an increase of 3.1% from the previous quarter’s reported figure.
 

 

Progress Software’s fourth-quarter results are expected to have benefited from improved business momentum.

Solid demand for OpenEdge and DataDirect solutions are expected to have been the key catalysts. Moreover, the Chef acquisition is likely to have aided top-line growth in the to-be-reported quarter. Markedly, Progress expects $10-$12 million contribution from the acquisition in the fourth-quarter.

However, the buyout is expected to have a slight dilutive effect on fourth-quarter earnings. Progress forecasts contribution of breakeven to a loss of four cents from the Chef acquisition.

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 Softwarehas an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). 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 +0.62% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Texas Instruments (TXN - Free Report) has an Earnings ESP of +1.52% and is #3 Ranked.

Apple (AAPL - Free Report) has an Earnings ESP of +10.58% and is Zacks #3 Ranked.

 

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