Looking At Post-Earnings Stock Movement: Verint Systems Inc. (NASDAQ:VRNT)

Verint Systems Inc. (NASDAQ:VRNT) reported earnings for the three months ended April 2016 on June 07, 2016. The company earned $0.46 per share on revenue of $245.42M. Analysts had been modeling earning per share of $0.41 with $250.71M in revenue.

Verint Systems Inc. (NASDAQ:VRNT) announced results for the three months ended April 30, 2016.

Financial Highlights

Below is selected unaudited financial information for the three months ended April 30, 2016 prepared in accordance with generally accepted accounting principles (“GAAP”) and not in accordance with GAAP (“non-GAAP”).

CEO Commentary

“We are pleased to report that in Q1 we delivered non-GAAP revenue of $249 million, or $251 million on a constant currency basis, and $0.46 of non-GAAP diluted EPS. In Enterprise Intelligence, revenue increased 6.5% year-over-year on a constant currency basis and we expect a year of growth driven by our broad portfolio of Customer Engagement Optimization solutions, all available now on-premises, in the cloud and in hybrid deployment models,” said Dan Bodner, CEO and President.

(1) Non-GAAP revenue on a constant currency basis was $251.0 million for the three months ended April 30, 2016. Please see Table 6 and “Supplemental Information about Non-GAAP Financial Measures” at the end of this press release for more information.

Financial Outlook

Below is Verint’s non-GAAP outlook for the year ending January 31, 2017.

  • We expect revenue as follows:
  • In our Enterprise Intelligence segment, we expect mid-to-high single digit revenue growth.
  • In our Security Intelligence segments, we expect a decline in revenue of between 10% to 15%.
  • Based on the above, for the year ending January 31, 2017, we expect total revenue to be similar to the year ended January 31, 2016, +/- 2.0% and diluted earnings per share to be similar to the year ended January 31, 2016.

Verint Systems Inc. earnings per share showed a decreasing trend of -46.2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 331%.Analysts project EPS growth over the next 5 years at 9.33%. It has EPS annual decline over the past 5 fiscal years of -1.8% when sales grew 9.2. It reported -8.9% sales drop, and 0% EPS decline in the last quarter.

The stock is trading at $35.24, up 18.41% from 52-week low of $29.76. The stock trades down -43.78% from its peak of $62.5 and % below the consensus price target of $39.67. Its volume clocked up at 0.29 million shares which is lower than the average volume of 0.79 million shares. Its market capitalization currently stands at $2.15B.

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