Verint Systems Misses Profit Estimates, Sees Growing Cloud Demand Momentum
Verint Systems Inc (VRNT) reported lower-than-expected quarterly profit while revenue increased fueled by growing cloud demand from large companies.
Fourth-quarter net income ended January 31 fell to $4.9 million, or 7 cents a share, from $27.3 million, or 41 cents a share, in the year-ago period. Revenue rose to $339 million from $330 million in the year-ago period. Adjusted earnings were $1.11 a share versus estimated adjusted earnings of $1.16. (See Verint earnings on TipRanks)
“In the current COVID-19 environment, we are highly engaged with our global base of customers helping them to navigate the new challenges they are facing,” Verint CEO Dan Bodner said. “Our employees remain fully engaged, working either from home, or from offices that have been authorized to remain open, and we believe our business continuity plan is working well.”
Bodner disclosed that Verint is experiencing strong cloud growth with revenue up about 45% year-on-year. Verint, which has more than 10,000 customers, said it received many large cloud orders in the fourth quarter, including an $18 million cloud renewal deal from a leading technology company and a $8 million cloud order from a new healthcare customer.
The two Wall Street analysts covering Verint in the last three months have a Buy recommendation for the stock adding up to a Moderate Buy consensus rating. The $58 average price target implies a 35% gain in the shares in the next 12 months. (See Verint stock analysis on TipRanks)
Looking ahead, Verint told investors that it would not be able to provide guidance for now due to the uncertain potential impact the coronavirus could have on the company’s operations.
Verint has $3 billion in assets, including more than $550 million of cash and short-term investments, the company said.
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