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What to Expect from Pegasystems's Earnings
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What to Expect from Pegasystems's Earnings
Oct 22, 2024 12:37 PM

Pegasystems ( PEGA ) will release its quarterly earnings report on Wednesday, 2024-10-23. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Pegasystems ( PEGA ) to report an earnings per share (EPS) of $0.34.

Investors in Pegasystems ( PEGA ) are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.27, leading to a 12.82% increase in the share price on the subsequent day.

Here's a look at Pegasystems's ( PEGA ) past performance and the resulting price change:

Quarter Q2 2024 Q1 2024 Q4 2023 Q3 2023
EPS Estimate 0.25 0.43 1 0.01
EPS Actual 0.52 0.48 1.77 0.44
Price Change % 13.0% 0.0% 36.0% 7.000000000000001%

Performance of Pegasystems Shares

Shares of Pegasystems ( PEGA ) were trading at $71.15 as of October 21. Over the last 52-week period, shares are up 86.36%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Pegasystems

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Pegasystems ( PEGA ).

Analysts have given Pegasystems ( PEGA ) a total of 11 ratings, with the consensus rating being Buy. The average one-year price target is $84.18, indicating a potential 18.31% upside.

Analyzing Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of BILL Holdings, Zeta Global Holdings and Clearwater Analytics Hldg, three prominent industry players, offering insights into their relative performance expectations and market positioning.

For BILL Holdings, analysts project an Neutral trajectory, with an average 1-year price target of $70.0, indicating a potential 1.62% downside.

As per analysts' assessments, Zeta Global Holdings is favoring an Buy trajectory, with an average 1-year price target of $33.14, suggesting a potential 53.42% downside.

For Clearwater Analytics Hldg, analysts project an Neutral trajectory, with an average 1-year price target of $26.57, indicating a potential 62.66% downside.

Key Findings: Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for BILL Holdings, Zeta Global Holdings and Clearwater Analytics Hldg, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Pegasystems ( PEGA ) Buy 17.73% $254.21M 1.60%
BILL Holdings Neutral 16.11% $278.46M 0.19%
Zeta Global Holdings Buy 32.61% $136.76M -13.74%
Clearwater Analytics Hldg Neutral 18.82% $76.90M -0.12%

Key Takeaway:

Pegasystems ( PEGA ) ranks at the top for revenue growth among its peers. It is in the middle for gross profit. Pegasystems ( PEGA ) is at the top for return on equity.

Delving into Pegasystems's Background

Founded in 1983, Pegasystems ( PEGA ) provides a suite of solutions for customer engagement and business process management. The company's key offering is the Pega Infinity platform, which combines business process management, or BPM, with customer relationship management, or CRM, applications. The company focuses on enterprise-size customers, specifically within the financial, insurance, and healthcare fields.

Financial Insights: Pegasystems

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Pegasystems ( PEGA ) displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 17.73%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Pegasystems's ( PEGA ) net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.88% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Pegasystems's ( PEGA ) ROE excels beyond industry benchmarks, reaching 1.6%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.43%, the company showcases effective utilization of assets.

Debt Management: Pegasystems's ( PEGA ) debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.35, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Pegasystems ( PEGA ) visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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