- Progress Software (PRGS, Financial) exceeds expectations with a remarkable 30% revenue growth in Q1 of fiscal 2025.
- Strategic acquisition of ShareFile boosts annualized recurring revenue by 48% year-over-year.
- Wall Street analysts predict a potential 34.39% upside for PRGS, with a consensus recommendation of "Outperform".
Progress Software (PRGS) has kicked off fiscal 2025 with an impressive performance, as the company posted $238 million in revenue for its first quarter. This marks a substantial 30% increase in constant currency, underscoring the company's strong market position and growth strategy.
Impressive Financial Metrics and Growth Drivers
One of the significant contributors to this growth has been the integration of ShareFile, finalized on October 31, 2024, which propelled the company's annualized recurring revenue (ARR) by 48% year-over-year. This acquisition not only enhances Progress Software's portfolio but also strengthens its foothold in the market.
Earnings per share (EPS) reached $1.31, surpassing previous expectations, while the operational margin climbed to 39%, highlighting the company's efficient cost management and expense integration strategies. Progress Software continues to focus on strategic acquisitions and maintains a disciplined capital allocation approach to underpin its long-term growth ambitions.
Wall Street Analysts Forecast
According to the one-year price targets provided by 6 analysts, Progress Software Corp (PRGS, Financial) is projected to reach an average target price of $74.67. These analysts offer a high estimate of $83.00 and a low estimate of $65.00, implying a potential upside of 34.39% from the current share price of $55.56.
Investors can explore more detailed forecast data on the Progress Software Corp (PRGS, Financial) Forecast page. With a consensus recommendation of 1.9, sourced from 7 brokerage firms, PRGS enjoys an "Outperform" status, hinting at continued confidence in its growth trajectory. This rating scale ranges from 1 (Strong Buy) to 5 (Sell).
Evaluation of GF Value
As per GuruFocus estimates, the GF Value for Progress Software Corp (PRGS, Financial) in one year is estimated to be $81.68, representing an impressive 47.01% upside from its current market price of $55.56. The GF Value is a calculated estimate of the stock's fair trading value, derived from historical trading multiples, past business growth, and future business performance projections.
For a deeper dive into these analytics, investors can visit the Progress Software Corp (PRGS, Financial) Summary page, which offers more comprehensive data and insights.
