Progress Software (PRGS 47.95, +4.28) has spiked 9.8% after reporting better than expected results and issuing upbeat guidance.
The software company, which offers solutions for enterprise integration and application development, reported above-consensus fourth quarter earnings of $0.67 per share on revenue of $116.30 million, which declined 1.4% year-over-year, but was still ahead of market expectations.
Software license sales declined 5.2% year-over-year to $45.96 million while Maintenance and services sales rose 1.3% to $70.12 million.
Looking at the regional sales breakdown, North America revenue declined 2.9% year-over-year to $66.50 million and Latin America revenue fell 34.7% to $5.49 million. Conversely, Europe, Middle East, and Africa revenue rose 7.8% to $38.04 million while Asia Pacific revenue rose 9.1% to $6.05 million.
Operating margin improved to 42.0% from 36.0% one year ago. Days Sales Outstanding declined to 47 days from 48 days in the previous quarter and 50 days one year ago.
The company repurchased 800,000 shares during the quarter, bringing its repurchase total for the fiscal year to 2.2 million shares.
Going forward, Progress Software expects that earnings for the first quarter will be between $0.46 and $0.48 per share, which is well ahead of market expectations. The company's guidance for revenue between $90 million and $93 million encompasses current market expectations.
For the full year, Progress expects to report earnings between $2.29 per share and $2.35 per share, which is also well above market estimates. Revenue for the full year is expected between $399 million and $404 million. The company expects that its non-GAAP effective tax rate will be around 22.0% while operating margin is expected between 35.0% and 36.0%. Adjusted free cash flows is expected between $115 million and $120 million.