Verint’s 4Q Results Top Estimates; Street Remains Bullish

Verint Systems reported stronger-than-expected 4Q results. However, shares of the actionable intelligence solutions provider fell 1.08% in Wednesday’s extended trading session.

Verint (VRNT) 4Q earnings of $0.98 per share declined 11.7% year-over-year but topped consensus estimates of $0.79 per share. The company’s revenues of $349.1 million grew 2.9% year-over-year and beat the Street’s estimates of $344.7 million, reflecting strength in its cloud platform. Notably, cloud revenues grew over 30% year-over-year in 4Q.

The company’s CEO Dan Bodner said, “We believe that behind our strong cloud momentum is our open cloud platform, expanding partner network and our strategy to help brands with their digital transformations.” (See Verint Systems stock analysis on TipRanks)

As for fiscal 2022 (ending Jan. 31, 2022), Verint Systems expects EPS of $2.20, which is in-line with consensus estimates. The company expects to generate FY22 revenues in the range of $842.8 – 877.2 million. Analysts are expecting revenues of $853.7 million for FY22.

Furthermore, the company expects its cloud revenues to increase by 30% to 35% in fiscal 2022 reflecting strong demand.

On Feb. 12, Oppenheimer analyst Timothy Horan maintained a Buy rating and a price target of $89 (95.7% upside potential). In a note to investors, the analyst said, “VRNT maintains a strong position in its key markets: Customer Engagement Optimization, Security Intelligence and Fraud, Risk and Compliance.” He added, “VRNT is well positioned to apply its expertise in the cybersecurity market.”

Overall, the Street has a Strong Buy consensus rating on the stock based on 4 unanimous Buys. The average analyst price target of $68.75 implies upside potential of about 51.1% to current levels. Shares have gained about 108.9% in one year.

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