price down icon0.27%   -0.15

Why is Pegasystems Inc. (PEGA) Stock down?

We've noticed a 5.00% decline in Pegasystems Inc. (PEGA) stock during the 2024-03-05 trading session. While this could be attributed to normal volatility or various internal and external factors, please be aware that we are actively monitoring the situation, and we'll provide timely updates as soon as possible!
16 Feb, 2024:

Pegasystems Inc. (PEGA) stock dropped by 5.70% due to its fourth-quarter earnings report, despite surpassing estimates on both the top and bottom lines.

  • Earnings Report Highlights: Pegasystems demonstrated robust performance in the fourth quarter, with revenue growth accelerating to 20%, totaling $474.2 million, significantly exceeding the consensus estimate of $413.6 million. Additionally, annual contract value increased by 11% to $1.26 billion, driven by growing demand for AI products. The company's introduction of Pega GenAI Blueprint, a generative AI application, further underscored its commitment to innovation. On the profitability front, Pegasystems witnessed a remarkable surge in profits, with adjusted earnings per share more than doubling from $0.82 to $1.77, surpassing the consensus estimate of $1.00. CEO Alan Trefler attributed this success to transformative innovation and strengthened client relationships.
  • Guidance and Outlook: Despite its impressive performance, Pegasystems provided guidance that slightly disappointed investors. The company forecasted annual contract value growth of 11% and revenue of $1.5 billion, aligning with estimates but representing only 4.7% growth. However, it anticipates adjusted earnings per share to improve from $2.48 to $2.75, surpassing the $2.43 consensus estimate.
price up icon 0.68%
price up icon 0.72%
price up icon 3.81%
price up icon 0.95%
price down icon 0.99%
price up icon 1.84%
Cap:     |  Volume (24h):