Progress Software stock rallies on earnings, outlook, acquisition

Progress Software stock rallies on earnings, outlook, acquisition

Progress Software Corp. shares rallied in the extended session Thursday after the business software company topped Wall Street estimates, hiked its full-year outlook, and announced an acquisition.

Progress Software PRGS, +2.21% shares surged 7% after hours, following a 2.2% rise in the regular session to close at $46.21.

The company reported third-quarter net income of $31 million, or 70 cents a share, compared with $24 million, or 53 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.18 a share, compared with 78 cents a share in the year-ago period.

Revenue rose to $152.3 million from $110.9 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 82 cents a share on revenue of $130.9 million.

Progress Software forecast full-year adjusted earnings of $3.68 to $3.70 a share on revenue of $548 million to $552 million, up from a previous forecast of $3.46 to $3.50 a share on revenue of $529 million to $535 million.

Analysts had estimated $3.48 a share on revenue of $532.8 million for the year.

The company also said it will acquire privately-held always-on app company Kemp for $258 million in cash. The deal is expected to close in October, and add to results in the fourth quarter.

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