Eye-Catching Stocks – Progress Software Corporation (NASDAQ:PRGS)

  March 30, 2017
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On Wednesday, Shares of Progress Software Corporation (NASDAQ:PRGS), gained 1.31% to $28.67. During the day, the lowest price at which share is traded was $28.23 and hit the highest price at $28.68. The stock’s institutional ownership stands at 93.80%.

Progress (PRGS), recently declared results for its fiscal first quarter ended February 28, 2017.

Revenue was $91.0M during the quarter contrast to $89.50M in the same quarter last year, a year-over-year increase of 2% on an actual currency basis and 3% on a constant currency basis. On a non-GAAP basis, revenue was $91.20M contrast to $90.20M in the same quarter last year, a boost of 1% on an actual currency basis and 2% on a constant currency basis.

Additional financial highlights included:

On a GAAP basis in the fiscal first quarter of 2017:

  • Revenue was $91.0M contrast to $89.50M in the same quarter in fiscal year 2016;
  • Income from operations was $1.20M (counting a restructuring charge of $17.10M) contrast to $6.70M in the same quarter last year;
  • Net loss was $0.50M contrast to net income of $3.20M in the same quarter last year;
  • Diluted loss per share was $0.01 contrast to diluted earnings per share of $0.06 in the same quarter last year; and
  • Cash from operations was $37.30M contrast to $22.50M in the same quarter last year.

On a non-GAAP basis in the fiscal first quarter of 2017:

  • Revenue was $91.20M contrast to $90.20M in the same quarter last year;
  • Income from operations was $27.10M contrast to $21.50M in the same quarter last year;
  • Operating margin was 30% contrast to 24% in the same quarter last year;
  • Net income was $16.80M contrast to $13.80M in the same quarter last year;
  • Diluted earnings per share was $0.34 contrast to $0.27 in the same quarter last year; and
  • Adjusted free cash flow was $43.0M contrast to $22.70M in the same quarter last year.

Yogesh Gupta, CEO at Progress, said: “I am happy with our Q1 performance. Our revenue and earnings per share were above our expectations, and we declared numerous important releases of our core technology during the quarter. I am also eager about our recent acquisition of DataRPM, which will enable us to speed up the development of our next-generation Cognitive Applications platform, the driver for our future growth.”

Paul Jalbert, newly designated CFO at Progress, said: “We achieved strong free cash flow during the quarter, driven mostly by collections that resulted in an excellent DSO performance, a testament to the quality of our products and services. Our quarterly dividend and continued share repurchases underscore our confidence in our financial strength and ongoing cash flow generation.”

Other fiscal first quarter 2017 metrics and recent results included:

  • Cash, cash equivalents and short-term investments were $264.20M;
  • DSO was 48 days contrast to 59 days in the fiscal first quarter of 2016 and 50 days in the fiscal fourth quarter of 2016;
  • Under the formerly declared authorization by the Board of Directors to repurchase up to $200.0M of shares of common stock, Progress repurchased 0.60M shares for $18.10M during the fiscal first quarter of 2017. As of February 28, 2017, there was $117.30M remaining under this authorization; and
  • On March 24, 2017, our Board of Directors declared a quarterly dividend of $0.125 per share of common stock that will be paid on June 15, 2017 to shareholders of record as of the close of business on June 1, 2017.

Business Outlook:

Progress provides the following guidance for the fiscal year ending November 30, 2017 and the second fiscal quarter ending May 31, 2017:

Progress’ fiscal 2017 financial guidance is based on current exchange rates. The negative currency translation impact on Progress’ fiscal year 2017 business outlook contrast to 2016 exchange rates is about $5.0M on GAAP and non-GAAP revenue. The negative currency translation impact on Progress’ fiscal Q2 2017 business outlook contrast to 2016 exchange rates is about $2.0M on GAAP and non-GAAP revenue. To the extent that there are further changes in exchange rates as compared to the current environment, this may have an additional impact on Progress’ business outlook.

Technical Analysis:

PRGS) has market value of $1.39 billion while its EPS was booked as $-1.16 in the last 12 months. The stock has 48.73 million shares outstanding. In the profitability analysis, the company has gross profit margin of 83.80% while net profit margin was -13.70%. Beta value of the company was 0.91; beta is used to measure riskiness of the security.

Analyst recommendation for this stock stands at 2.80.

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