Software firm Progress Software (PRGS 29.93, +1.26) trades about +4.4% higher on Thursday after the company’s Q1 earnings and revenues beat market expectations.
Specifically, the company’s Q1 earnings per share (EPS) came in ahead of market expectations, despite currency headwinds, at $0.34 on revenues which rose about 1.1% compared to last year to $91.2 million (above prior guidance of $86-89 million). Collections in the quarter were also strong, with particular strength coming out of North America.
Breaking the revenue beat down, PRGS reported 2% growth in Software license revenues in Q1 to about $24.32 million. Maintenance and services revenues were up 2% as well to about $66.65 million for the quarter.
By segment, PRGS reported OpenEdge revenue growth of 1% to about $64.51 million in Q1. Data Connectivity and Integration revenues grew about 4% compared to last year to $6.8 million, while Application Development and Deployment revenues increased 5% to $19.63 million.
Looking ahead, PRGS sees in-line Q2 (May) EPS of $0.35-0.37 on worse than expected revenues between $89-92 million. The company also reaffirmed FY17 guidance for EPS in the range of $1.64-1.69 with revenues between $388-396 million.
The EPS and revenue beat seems to be carrying the stock today, as tepid Q2 guidance and a reaffirm for the full year can be viewed as cautious given the tapering currency headwinds and solid performance out of the company’s OpenEdge segment.