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Progress Software stock gets a boost from 1Q beat following Ipswitch acquisition

The app development company posted revenue of $100 million, up 8% year over year from $92.9 million, and outpacing the consensus estimate of $98.2 million

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During the quarter, Progress completed its acquisition of Ipswitch, a privately-held IT management software developer

Progress Software Corporation (NASDAQ:PRGS) stock jumped after the company reported fiscal second-quarter results late Thursday that surpassed expectations.

The app development company posted revenue of $100 million, up 8% year over year from $92.9 million, and outpacing the consensus estimate of $98.2 million.

Adjusted earnings clocked in at $0.65 per share, an 18% improvement from $0.55 in the prior year quarter and ahead of Street expectations of $0.57.

Shares climbed nearly 11% to $45.06.

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During the quarter, Progress completed its acquisition of Ipswitch, a privately-held IT management software developer for about $$225 million.

“We exceeded both our revenue and EPS guidance for Q2, and also completed the acquisition of Ipswitch during the quarter,” said Yogesh Gupta, CEO at Progress. “I'm very pleased with the integration so far, and we are focused on achieving our targeted shareholder returns for this acquisition even earlier than we had anticipated.

Looking ahead, the Bedford, Massachusetts-based company expects fiscal third-quarter revenue to be between $109 million and $112 million, right in line with analyst estimates of $110.9. Earnings are projected to come in between $0.68 and $0.70 per share, while analysts are calling for $0.66.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Quick facts: Progress Software

Price: 41.85 USD

NASDAQ:PRGS
Market: NASDAQ
Market Cap: $1.87 billion
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