Low-code automation software company Pegasystems (NASDAQ: PEGA) will be reporting results this Tuesday after market close. Here’s what investors should know.
Pegasystems beat analysts’ revenue expectations by 5.9% last quarter, reporting revenues of $384.5 million, up 9.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
Is Pegasystems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Pegasystems’s revenue to grow 8.2% year on year to $351.6 million, a reversal from the 2.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 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 twice 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 segment has faced declining investor sentiment as Pegasystems’s peer group is down 6.9% on average over the last month. Pegasystems is down 11% during the same time and is heading into earnings with an average analyst price target of $65.09 (compared to the current share price of $53.36).
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