PEGA(US:PEGA) ZACKSยท2025-07-15 15:06Core Viewpoint - Pegasystems (PEGA) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on July 22, and if the key numbers exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The consensus estimate for quarterly earnings is $0.24 per share, reflecting a year-over-year decrease of 7.7%, while revenues are projected to be $368.77 million, representing a 5% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 5%, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate for Pegasystems is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -12.03%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the deviation of actual earnings from consensus estimates, with positive readings being more reliable [9][10]. - Pegasystems currently holds a Zacks Rank of 1, but the negative Earnings ESP complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Pegasystems was expected to post earnings of $0.23 per share but delivered $0.76, resulting in a surprise of +230.43% [13]. - The company has successfully beaten consensus EPS estimates in the last four quarters [14]. Conclusion - While Pegasystems does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].