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Progress Software stock surges nearly 20% on earnings beat, raised outlook

Wallace Witkowski

Progress Software Corp. shares rallied in the extended session Thursday after the company topped Wall Street estimates for the quarter and hiked its outlook. Progress Software shares rallied 18% after hours, following a 3.5% gain to close the regular session at $38.32. The company reported fiscal first-quarter net income of $9.4 million, or 21 cents a share, compared with $13.7 million, or 29 cents a share, in the year-ago period. Adjusted earnings were 50 cents a share. Revenue declined to $89.5 million from $95.4 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 47 cents a share on revenue of $87.6 million. The company hiked its fiscal 2019 outlook to reflect its announced $225 million acquisition of network management company Ipswitch Inc. For the year, Progress expects adjusted earnings of $2.46 to $2.52 a share on adjusted revenue of $422 million to $428 million, while analysts had forecast earnings of $2.37 a share on revenue of $383.4 million.