WASHINGTON (dpa-AFX) - Progress Software Corp. (PRGS) Tuesday reported a decline in fourth-quarter profit, hurt largely by one-time expenses that offset an eight percent revenue growth. Nonetheless, both earnings and revenues for the quarter came in ahead of Wall Street estimates.
However, shares of the business software maker tanked 11 percent in after-hours trade after having detailed a weak earnings outlook for the first quarter and full year 2015.
Bedford, Massachusetts-based Progress Software's fourth-quarter profit dropped to $14.5 million or $0.28 per share from $15 million or $0.29 per share last year.
Excluding one-time items, adjusted earnings for the quarter rose to $0.47 per share from $0.43 per share a year ago. On average, five analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude one-time items.
Progress Software, which competes with the likes of Tibco Software, said revenues for the fourth quarter rose 8 percent to $97.9 million from $91.0 million a year ago. Analysts had a consensus revenue estimate of $96.2 million for the quarter.
Software licenses revenues rose 10 percent to $41.2 million, while maintenance and services revenue climbed 6 percent to $56.7 million.
Looking forward to the first quarter, the company expects adjusted earnings of $0.22 to $0.24 per share on revenues of $79.5 million to $82.5 million. Analysts currently expect earnings of $0.32 per share on revenues of $80.4 million.
For the full year 2015, Progress expects adjusted earnings of $1.37 to $1.47 per share on revenues of $390 million to $400 million. Analysts currently expect earnings of $1.52 per share on revenues of $351.4 million for the year.
PRGS closed Tuesday's trading at $26.40, up $0.21 or 0.80%, on the Nasdaq. Nonetheless, the stock dropped $2.80 or 10.61% in the after-hours trade.
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