Progress Software ( PRGS ) is set to give its latest quarterly earnings report on Monday, 2025-03-31. Here's what investors need to know before the announcement.

Analysts estimate that Progress Software ( PRGS ) will report an earnings per share (EPS) of $1.39.

The announcement from Progress Software ( PRGS ) is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

The company's EPS beat by $0.12 in the last quarter, leading to a 9.86% drop in the share price on the following day.

Here's a look at Progress Software's ( PRGS ) past performance and the resulting price change:

Tracking Progress Software's Stock Performance

Shares of Progress Software ( PRGS ) were trading at $53.52 as of March 27. Over the last 52-week period, shares are up 0.94%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Progress Software

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

Analysts have provided Progress Software ( PRGS ) with 5 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $75.8, suggesting a potential 41.63% upside.

Analyzing Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Teradata, Rapid7 and SolarWinds, three key industry players, offering insights into their relative performance expectations and market positioning.

As per analysts' assessments, Teradata is favoring an Buy trajectory, with an average 1-year price target of $30.75, suggesting a potential 42.54% downside.

The prevailing sentiment among analysts is an Neutral trajectory for Rapid7, with an average 1-year price target of $39.5, implying a potential 26.2% downside.

For SolarWinds, analysts project an Neutral trajectory, with an average 1-year price target of $17.3, indicating a potential 67.68% downside.

Peer Analysis Summary

The peer analysis summary presents essential metrics for Teradata, Rapid7 and SolarWinds, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Progress Software ( PRGS ) is positioned in the middle among its peers for consensus recommendation. It ranks at the bottom for revenue growth. In terms of gross profit, it is at the top. However, for return on equity, it is at the bottom compared to its peers.

About Progress Software

Progress Software Corporation ( PRGS ) provides software operate in one operating segment: software products for the development, deployment, and management of responsible, AI-powered applications and digital experiences. Following are products: Chef, Corticon, Data Direct, Developer Tools, Flowmon, Kemp LoadMaster, MarkLogic, MOVEit, OpenEdge, Semaphore, ShareFile, Sitefinity, WhatsUp Gold. Geographical regions include United States, Canada, EMEA, Latin America, and Asia Pacific.

Breaking Down Progress Software's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Positive Revenue Trend: Examining Progress Software's ( PRGS ) financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 21.47% as of 30 November, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Progress Software's ( PRGS ) net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 0.53%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 0.27%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Progress Software's ( PRGS ) ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.06%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Progress Software's ( PRGS ) debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.56, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Progress Software ( PRGS ) visit their earnings calendar on our site.

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