Pegasystems (PEGA) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - The market anticipates Pegasystems (PEGA) will report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Pegasystems is expected to post quarterly earnings of $1.52 per share, reflecting a year-over-year decrease of 14.1%, while revenues are projected to reach $482.32 million, an increase of 1.7% from the previous year [3]. - The consensus EPS estimate has been revised 11.63% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Pegasystems is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +4.99%, indicating a likelihood of beating the consensus EPS estimate [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Historical Performance - In the last reported quarter, Pegasystems was expected to earn $0.35 per share but delivered $0.39, resulting in a surprise of +11.43% [12]. - Over the past four quarters, Pegasystems has exceeded consensus EPS estimates three times [13]. Conclusion - Pegasystems is viewed as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance beyond just earnings results [16].