Enterprise workflow software provider Pegasystems (NASDAQ: PEGA) will be reporting earnings tomorrow after the bell. Here’s what to look for.
Pegasystems beat analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $490.8 million, up 3.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ billings estimates and full-year guidance of accelerating revenue growth.
Is Pegasystems a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Pegasystems’s revenue to grow 8.3% year on year to $357.5 million, improving from the 1.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Pegasystems has missed Wall Street’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 to get a hint at how this quarter will unravel for productivity software stocks. However, the whole sector has faced a sell-off over the last month with stocks in Pegasystems’s peer group down 14.4% on average. Pegasystems is down 10.5% during the same time and is heading into earnings with an average analyst price target of $96.73 (compared to the current share price of $67).
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