Progress Software stock rallies on earnings, outlook, acquisition

Switch stock jumps on possible reorganization as a REIT

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
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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