Enterprise workflow software provider Pegasystems (NASDAQ:PEGA) will be announcing earnings results tomorrow after the bell. Here's what to look for.
Last quarter Pegasystems reported revenues of $474.2 million, up 19.6% year on year, beating analyst revenue expectations by 14.2%. It was an incredible quarter for the company, with an impressive beat of analysts' billings estimates and a significant improvement in its gross margin.
Is Pegasystems buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Pegasystems's revenue to grow 3.6% year on year to $337.2 million, improving on the 13.5% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates four times over the last two years.
With Pegasystems being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for productivity software stocks, but the whole sector have been hit hard on fears of higher interest rates, with stocks down on average 6.7% over the last month. Pegasystems is down 10.6% during the same time, and is heading into the earnings with analyst price target of $71.6, compared to share price of $58.1.
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