Progress Software Rises After Analysts Back Outlook

Progress Software traded higher Friday after the business-software company raised its full-year guidance for fiscal 2021.
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Shares of Progress Software  (PRGS) - Get Report were higher on Friday after the business-software company reported better-than-expected fiscal-first-quarter results and raised its full-year guidance, which drew praise from Wall Street analysts.

Shares of the Bedford, Mass., company at last check rose 4.8% to $43.80.

Progress posted GAAP earnings of 42 cents a share, down from 46 cents a share in the year-ago period. Adjusted earnings rose to 95 cents a share from 75 cents.

Revenue for the quarter ended Feb. 28 rose 11% to $121.2 million from $109.6 million in the year-ago period. 

Non-GAAP revenue for the quarter rose 16% to $131.8 million.

Analysts surveyed by FactSet had forecast adjusted earnings of 75 cents a share on revenue of $121.4 million. 

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Progress Software expects earnings of $1.56 to $1.60 a share for the full fiscal year ending Nov. 30, higher than its previous estimates of $1.40 to $1.46 a share.

Revenue is expected to rise between $493 million to $501 million for fiscal 2021.

“Progress delivered strong financial results across the board in the first quarter, which has given us even greater confidence in our prospects for 2021," Chief Executive Anthony Folger said in a statement.

"The integration of Chef is tracking ahead of plan, and Chef’s first full quarter with Progress contributed better-than-expected performance and helped continue the trend of an increasing mix of revenue being derived from recurring sources,” Folger added.

Analysts at Benchmark, which has a buy rating on the stock, said the outlook was "strong and commentary on the business activity was upbeat, a sign that steady execution should continue through the rest of the year."

Benchmark has a price target of $55 on the stock.

Wedbush analysts said the report “speaks to a company that is gaining some nice growth momentum.”

Wedbush has an outperform rating on the stock with a price target of $55 as well.

Wedbush added that the software company is in the early innings of hitting its next stage of growth.