NEW YORK (TheStreet) -- Shares of Progress Software (PRGS) - Get Report  closed trading up by 1.57% to $25.83 on Wednesday, ahead of the release of the company's third quarter earnings results, due out tomorrow after the close. 

Analysts on average are expecting the company to report earnings of 37 cents per share on revenue of $104.29 million for the most recent quarter.

The company set its own third quarter earnings guidance between 35 cents and 38 cents per share.

The company reported earnings of 3 cents per share in the year ago period.

Progress Software is a Bedford, MA-based global software company that provides solutions for rapid application development, broad data integration and efficient data analysis.

Separately, TheStreet Ratings team rates PROGRESS SOFTWARE CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate PROGRESS SOFTWARE CORP (PRGS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 10.1%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • PRGS's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $20.79 million or 21.47% when compared to the same quarter last year. In addition, PROGRESS SOFTWARE CORP has also vastly surpassed the industry average cash flow growth rate of -30.52%.
  • The gross profit margin for PROGRESS SOFTWARE CORP is currently very high, coming in at 89.59%. Regardless of PRGS's high profit margin, it has managed to decrease from the same period last year.
  • You can view the full analysis from the report here: PRGS