Pegasystems PEGA is scheduled to report fourth-quarter 2024 results after market close on Feb. 13.

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The consensus mark for PEGA’s fourth-quarter 2024 earnings is pegged at $1.52 per share, implying a year-over-year decline of 14.12%.

Pegasystems’ earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing on one occasion, the average surprise being 50.23%.

The Zacks Consensus Estimate for its revenues is pegged at $482.32 million, suggesting year-over-year growth of 1.71%.

Let’s see how things have shaped up for this announcement.

Factors to Consider for PEGA Stock

Pegasystems’ fourth-quarter performance is expected to have gained from rising demand for business process automation among organizations. A growing number of organizations are moving toward low-code automation platforms like those of Pegasystems as they are easier to maintain. This trend is likely to drive the adoption of Pegasystems’ GenAI Blueprint tool, positively impacting the company’s results in the to-be-reported quarter.

Pega GenAI Blueprint tool aligns with modern cloud architecture and facilitates the adoption of Pega Cloud platform. Moreover, Pegasystems is also migrating its clients to the Pega Cloud platform from their on-premise infrastructures. The combination of these two factors is likely to have driven Pega Cloud revenues in the to-be-reported quarter.

Pegasystems is implementing innovations across its portfolio. In the fourth quarter of 2024, PEGA updated its GenAI Blueprint with new AI-powered legacy discovery features. The company also updated its Pega Smart Investigate product with new automation and generative AI features to enable banks to process payments faster.

These advancements are expected to have positioned Pegasystems to attract more clients seeking to eliminate manual processes, upgrade legacy systems, and meet evolving regulatory requirements in the to-be-reported quarter.

Earnings Whispers for PEGA

Our proven model predicts an earnings beat for PEGA this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.60 per share) and the Zacks Consensus Estimate ($1.52 per share), is +4.99%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: PEGA carries a Zacks Rank #3 at present.

Other Stocks With Favorable Combination

Akamai Technologies AKAM, Twilio TWLO and Accenture ACN are some other stocks that have a favorable combination.

Akamai Technologies has an Earnings ESP of +0.09% and a Zacks Rank #2 at present. AKAM shares have plunged 22.2% in the trailing 12-month period. AKAM is set to report its fourth-quarter 2024 results on Feb. 20. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Twilio has an Earnings ESP of +3.28% and sports a Zacks Rank #1 at present. TWLO shares have rallied 104.6% in the trailing 12-month period. TWLO is slated to report its fourth-quarter 2024 results on Feb. 13.

Accenture has an Earnings ESP of +4.05% and a Zacks Rank #3 at present. ACN shares have gained 5.1% in the trailing 12-month period. ACN is scheduled to report its second-quarter fiscal 2025 results on Feb. 20.

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