Progress Software misses on revenue in 3Q, lowers its full-year outlook

Progress Software Corporation (NASDAQ:PRGS) fell short of revenue expectations in its fiscal third-quarter earnings, sending its shares falling double digits.

The software company reported earnings of $0.60 per share on revenue of $95.79 million compared with $0.48 on revenue of $97.62 million in the previous year’s third quarter.

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The Massachusetts-based company beat Wall Street estimates of $0.58 EPS, but fell short of revenue expectations of $96.98 million.

Shares of Progress fell nearly 14% to $36.60 in Thursday after-hours trading.

For the fourth quarter, the company expects revenue of $107 million to $110 million.

For the year ahead, Progress lowered its revenue guidance to $393 million to $396 million compared with its prior guidance of $399 million to $404 million.

“While I’m disappointed in our moderated revenue outlook for the year, our business remains solid, led by the consistent performance of our OpenEdge ISVs”, said CEO Yogesh Gupta in the company’s press release.

“I’m confident in our strategy, and in our ability to take advantage of the opportunities we see in modern application development,” he added.

The company’s board did increase its quarterly dividend by 11% to $0.155 per share that will be paid on December 17, 2018 to shareholders of record as of the close of business on December 3, 2018.

Progress’ platform offers strategic business applications, tools for building apps, cloud services and data connectivity technology.

Story by ProactiveInvestors