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Progress Software sees shares jump as fourth quarter earnings beat estimates, guidance upbeat

The group’ adjusted earnings per share were 67 US cents, above the 61 US cents consensus, with revenue 1.4% to US$116.1mln topping consensus of US$114.3mln
The firm expects its first quarter earnings per share to be US$0.46 to $US0.48, up 35% to 41% year-on-year

Progress Software Corp. (NASDAQ:PRGS) shares jumped almost 9% in pre-market trading after the company beat fourth quarter earnings estimates and offered upbeat guidance.

The Massachusetts-based company reported fourth quarter EPS of 34 US cents, after a loss per share of US$1.52 a share a year ago.

The group’ adjusted earnings per share were  67 US cents, above the 61 US cents consensus, with revenue  1.4% to US$116.1mln topping consensus of US$114.3mln albeit showing a 1.6% year-on-year decline.

On its post-results conference call, Progress’ chief financial officer, Paul Jalbert said the firm expects its first quarter earnings per share to be US$0.46 to $US0.48, an 35% to 41% increase compared to the US$0.34 seen in the first quarter last year.

He added that the guidance reflects the impact of the newly enacted US tax legislation which will lower the group’s non-GAAP effective tax rate to approximately 24% for the quarter, albeit slightly higher than the full-year rate.

Progress Software has recently come under pressure from hedge fund Praesidium Investment Management, its third biggest shareholder, which has urged it to replace its chairman.

In pre-market trading, Progress Software shares were up 8.9% at US$47.50.

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