Stock of the Day

July 30, 2019

Progress Software (PRGS)

$40.87
+$2.26 (+5.9%)
Market Cap: $1.58B

About Progress Software

Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers. It also provides MOVEit, a managed file transfer software for managing and controlling the movement of sensitive files and securing them both at-rest and in-transit; DataDirect, a secure data connectivity tools for Relational, NoSQL, Big Data and SaaS data sources; WhatsUp Gold, a network infrastructure monitoring software providing complete visibility of all network devices, servers, virtual machines, and cloud and wireless environments to find and fix network problems; Flowmon, a network security and visibility product with automated response across hybrid cloud ecosystems; Corticon, a decision automation platform to transform user experiences by streamlining and automating complex business rules; MarkLogic, a data agility platform to connect data and metadata; and Semaphore, a Semantic AI platform. The company offers project management, implementation, custom software development, programming, and other services, as well as web-enable applications; and training services. It sells its products to end users, independent software vendors, original equipment manufacturers, system integrators, value added resellers, and distributors. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.

Today's Trend

Progress Software Corporation (NASDAQ: PRGS) is trading higher as investors weigh a significant quarterly earnings beat, supportive analyst commentary, and new artificial-intelligence product capabilities against slightly weaker revenue and cautious concerns about AI-related competitive risk.

  • Q3 earnings exceeded expectations. Progress reported adjusted EPS of $1.69, ahead of the $1.49–$1.52 analyst consensus and well above $1.50 a year earlier. The earnings beat is the primary positive catalyst for the shares. Progress Software Beats Q3 Earnings Estimates
  • Analyst support improved the outlook. DA Davidson reaffirmed a “Buy” rating and set a $55 price target, implying substantial upside from the stock’s recent level. A broader analyst article also characterized Progress as one of the technology stocks attracting bullish sentiment. DA Davidson Reaffirms Buy Rating
  • Progress introduced expanded Agentic RAG capabilities. The new features are designed to connect enterprise knowledge across business systems and support AI agents and large language models without requiring customers to rebuild existing deployments. The announcement reinforces the company’s strategy to benefit from enterprise AI adoption. Progress Software Announces Agentic RAG Capabilities
  • Management will highlight AI and accessibility initiatives. Progress ShareFile is scheduled to co-host a session with Applause on AI’s role in accessibility compliance, providing additional visibility for its AI and enterprise software offerings. Progress Software and Applause Accessibility Session
  • Full-year guidance was broadly in line. Progress expects fiscal 2026 adjusted EPS of $6.15–$6.23, compared with a FactSet estimate of $6.18. Fourth-quarter guidance calls for EPS of $1.24–$1.33.
  • Revenue slightly missed expectations and declined year over year. Q3 revenue was approximately $246 million versus the $247.3 million consensus, down 1.5% from the prior-year period. Shares initially moved lower following the results, suggesting investors remain focused on limited top-line growth.
  • AI execution risks remain. One analysis argued that competitive and adoption risks related to AI warrant a larger valuation discount, tempering the otherwise favorable earnings and analyst signals. Progress Software AI Risk Analysis
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