Latest news with #PRGS
Washington Post
2 days ago
- Business
- Washington Post
Progress Software: Fiscal Q2 Earnings Snapshot
BURLINGTON, Mass. — BURLINGTON, Mass. — Progress Software Corp. (PRGS) on Monday reported fiscal second-quarter profit of $17 million. The Burlington, Massachusetts-based company said it had net income of 39 cents per share. Earnings, adjusted for one-time gains and costs, came to $1.40 per share. The results beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.30 per share.
Yahoo
2 days ago
- Business
- Yahoo
Progress Software: Fiscal Q2 Earnings Snapshot
BURLINGTON, Mass. (AP) — BURLINGTON, Mass. (AP) — Progress Software Corp. (PRGS) on Monday reported fiscal second-quarter profit of $17 million. The Burlington, Massachusetts-based company said it had net income of 39 cents per share. Earnings, adjusted for one-time gains and costs, came to $1.40 per share. The results beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.30 per share. The business software maker posted revenue of $237.4 million in the period, which did not meet Street forecasts. Four analysts surveyed by Zacks expected $237.8 million. For the current quarter ending in August, Progress Software expects its per-share earnings to range from $1.28 to $1.34. The company said it expects revenue in the range of $237 million to $243 million for the fiscal third quarter. Progress Software expects full-year earnings in the range of $5.28 to $5.40 per share, with revenue ranging from $962 million to $974 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on PRGS at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Is There An Opportunity With Progress Software Corporation's (NASDAQ:PRGS) 45% Undervaluation?
The projected fair value for Progress Software is US$117 based on 2 Stage Free Cash Flow to Equity Current share price of US$63.76 suggests Progress Software is potentially 45% undervalued Analyst price target for PRGS is US$71.71 which is 39% below our fair value estimate How far off is Progress Software Corporation (NASDAQ:PRGS) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the forecast future cash flows of the company and discounting them back to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Believe it or not, it's not too difficult to follow, as you'll see from our example! Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$260.1m US$295.8m US$304.7m US$340.5m US$359.9m US$375.8m US$390.8m US$405.2m US$419.2m US$433.0m Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x3 Analyst x2 Analyst x2 Est @ 4.44% Est @ 3.99% Est @ 3.68% Est @ 3.46% Est @ 3.30% Present Value ($, Millions) Discounted @ 9.3% US$238 US$247 US$233 US$238 US$230 US$220 US$209 US$198 US$188 US$177 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$2.2b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$433m× (1 + 2.9%) ÷ (9.3%– 2.9%) = US$7.0b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$7.0b÷ ( 1 + 9.3%)10= US$2.8b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$5.0b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$63.8, the company appears quite undervalued at a 45% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Progress Software as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.3%, which is based on a levered beta of 1.480. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Progress Software Strength Debt is well covered by earnings. Weakness Earnings declined over the past year. Opportunity Annual earnings are forecast to grow faster than the American market. Trading below our estimate of fair value by more than 20%. Threat Debt is not well covered by operating cash flow. Annual revenue is forecast to grow slower than the American market. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Can we work out why the company is trading at a discount to intrinsic value? For Progress Software, we've compiled three pertinent aspects you should assess: Risks: Every company has them, and we've spotted 2 warning signs for Progress Software (of which 1 can't be ignored!) you should know about. Future Earnings: How does PRGS's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
- Yahoo
Progress Software (PRGS) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
The market expects Progress Software (PRGS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended May 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on June 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This business software maker is expected to post quarterly earnings of $1.30 per share in its upcoming report, which represents a year-over-year change of +19.3%. Revenues are expected to be $237.84 million, up 35.9% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Progress Software, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.46%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Progress Software will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Progress Software would post earnings of $1.04 per share when it actually produced earnings of $1.31, delivering a surprise of +25.96%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Progress Software appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Progress Software Corporation (PRGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
Progress Software announces Q2 release of Progress Telerik, Kendo UI
Progress Software (PRGS) announced the Q2 2025 release of Progress Telerik and Progress Kendo UI, the most powerful .NET and JavaScript UI libraries for modern application development. This release introduces a number of groundbreaking AI capabilities that significantly accelerate development workflows, including AI Coding Assistants for Blazor and React, AI-driven theme generation and GenAI-powered reporting insights. Highlights of the Telerik and Kendo UI Q2 2025 release: AI Coding Assistants for Blazor and React: Empowers developers to automatically generate production-ready code in the Progress Telerik UI for Blazor and Progress KendoReact libraries directly inside all popular AI-powered IDEs, minimizing manual edits and significantly shortening development cycles. AI Theme Generation in Progress ThemeBuilder: Developers can leverage natural language prompts to create custom styles for Telerik and Kendo UI components, with real-time previews that streamline design-to-production workflows and uphold consistent branding. GenAI-Powered Reporting Insights: Integrated directly into Progress Telerik Reporting, these intelligent summaries and contextual insights eliminate the need for external tools, enabling faster, more informed decisions. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on PRGS: Disclaimer & DisclosureReport an Issue Progress announces ShareFile integration with Microsoft 365 Progress Software Holds Annual Stockholders Meeting on May 8 Progress Software price target lowered to $70 from $75 at DA Davidson Sign in to access your portfolio
