Back to top

Image: Bigstock

Progress Software (PRGS) to Post Q2 Earnings: What's in Store?

Read MoreHide Full Article

Progress Software (PRGS - Free Report) is slated to release its second-quarter fiscal 2023 results on Jun 29.

For the to-be-reported quarter, the company anticipates non-GAAP revenues in the range of $168-$172 million. Non-GAAP earnings are anticipated between 88 cents and 92 cents per share.

The Zacks Consensus Estimate for fiscal second-quarter earnings has been steady at 90 cents per share over the past 30 days, suggesting a 13.46% decline from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $170.31 million, indicating 12.88% year-over-year growth.

Progress Software’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 7.43% on average.

The company has been benefiting from a strong portfolio with a robust adoption rate for its Chef, OpenEdge, DataDirect and Sitefinity solutions. In the fiscal first quarter, the net dollar retention rate was more than 102%.

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

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 Software has an Earnings ESP of 0.00% and carries a Zacks Rank #3 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:

Apple (AAPL - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AAPL shares have gained 43.7% year to date. Apple is likely to report its third-quarter fiscal 2023 results on Jul 27.

Cognizant Technology (CTSH - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #3.

CTSH shares have gained 8.5% in the year-to-date period. Cognizant is likely to report its second-quarter 2023 results on Jul 26.

KLA (KLAC - Free Report) has an Earnings ESP of +0.02% and a Zacks Rank #3.

KLAC shares have gained 21.2% year to date. KLA is likely to report its second-quarter 2023 results on Jul 27.



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

Published in