Progress Software shares surge on 1Q earnings and revenue beats powered by OpenEdge

Progress Software Corp (NASDAQ:PRGS) stock spiked after posting fiscal first-quarter results that beat earnings and revenue expectations late Thursday.

The app-development platform delivered diluted earnings of $0.50 per share on revenue of $89.5 million, outpacing Street expectations of $0.47 EPS on revenue of $87.6 million. The company brought in $0.56 EPS on revenue of $95.5 million a year earlier. 

The stock sprang ahead 22% to $47 in morning trading.

CEO Yogesh Gupta attributes the gains to the success of its business application development language, OpenEdge, at bringing in license revenue. 

Looking forward, the Bedford, Massachusetts company expects EPS between $0.55 and $0.57 in its second quarter, and between $2.46 and $2.52 for fiscal 2019.

Revenue is expected to come in between $96 million and $99 million next quarter and between $422 and $428 million for the fiscal year.

In April, Progress expects to complete its previously announced $225 million cash acquisition of Ipswitch Inc, an IT management software developer.

Contact Andrew Kessel at [email protected]

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Story by ProactiveInvestors