Progress Software drops 7% as guidance falls short of estimates; software stocks stay mixed

Jun. 29, 2022 11:30 AM ETProgress Software Corporation (PRGS)CRM, ADBE, INTU, MSFT, NOWBy: Chris Ciaccia, SA News Editor

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Progress Software (NASDAQ:PRGS) fell nearly 8% on Wednesday as the Boston-based application software company posted second-quarter results that topped expectations, but issued guidance that fell well short of expectations.

Looking to the third-quarter, Progress (PRGS) said it expects revenue to be between $147M and $150M, well below the $160.92M that analysts were expecting. Adjusted earnings per share is forecast to be between 96 cents and 98 cents per share, compared to estimates of $1.10 per share.

For the full-year, Progress (PRGS), led by Chief Executive Yogesh Gupta, expects sales to be between $609M and $617M, with earnings between $4.05 and $4.11 per share. Analysts were expecting $612.76M in sales and $4.06 per share in earnings.

Second-quarter results topped expectations, however, as Progress (PRGS) reported $150.88M in revenue and $1.04 per share in adjusted earnings. Analysts were expecting $146.45M and 95 cents per share in adjusted earnings.

Other software stocks were mixed following the news, as Salesforce (CRM) was slightly lower, while Adobe (ADBE), Intuit (INTU), Microsoft (MSFT) and ServiceNow (NOW) all traded higher in early Wednesday trading.

Progress (PRGS) recently expanded its partnership agreement with Ingram Micro to extend the coverage of PRGS' application experience products in Sweden, Finland, Denmark and Norway.

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