Enterprise workflow software provider Pegasystems (NASDAQ:PEGA) will be announcing earnings results tomorrow afternoon. Here's what to expect.
Last quarter Pegasystems reported revenues of $325.5 million, down 13.5% year on year, missing analyst expectations by 7.14%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and a decline 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 13.2% year on year to $310.6 million, improving on the 15.8% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 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 five 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 software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 8.84% over the last month. Pegasystems is up 10.4% during the same time, and is heading into the earnings with analysts' price target of $53.65, compared to share price of $53.01.
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The author has no position in any of the stocks mentioned.