Verint Systems Inc.(NASDAQ: VRNT) has reported the adjusted earnings per share of $0.90 in the fourth quarter 2016, beating the analysts’ estimates for the adjusted earnings per share of $0.86. The company had reported the adjusted revenue growth of 5 percent to $295.9 million in the fourth quarter 2016, beating the analysts’ estimates for revenue of $294.1 million. Verint Systems has returned to profitability in the November-January period due to the higher sales of its computer software, which is used by business call centers and government intelligence agencies. Verint Systems has reported a profit of $8 million in the fourth quarter 2016 as compared to the losses, which the company incurred for most of the fiscal year, as it made less money on product sales. Given these solid results, Verint stock rallied 7.5% in the after-hours market on March 29th, 2017 (Source: Google finance).
Verint Systems in the fourth quarter has expanded the portfolio of products used by call centers and is experiencing greater demand for its software among government intelligence agencies. The software sifts through data, audio and video streams to detect threats.
In Customer Engagement, the fourth quarter revenue increased 6% year-over-year on a constant currency basis and expand the portfolio with a flexible hybrid cloud deployment strategy. In Cyber Intelligence, fourth quarter revenue increased 7% year-over year on a constant currency basis due to a better global spending environment and increasing demand for the cyber intelligence solutions.
For the full year 2016, Verint Systems has reported a loss of $29.4 million compared with a profit of $17.6 million for the 12 months ended January 2016. The revenue fall 6 percent to $1 billion.
For FY 17, Verint Systems expects the revenue of $1.14 billion with a range of +/- 2% and diluted earnings per share is expected of $2.70 at the midpoint. The revenue from the Customer Engagement segment, is expected to be mid-single digit revenue growth and the revenue from the Cyber Intelligence segment, is expected to be high-single digit revenue growth. There are revenue adjustments are related to completed acquisitions are expected to be between approximately $9 million and $12 million for the year ending January 31st, 2018. The stock-based compensation is expected to be between approximately $60 million and $70 million for the year ending January 31st, 2018, assuming the market prices for the common stock is approximately consistent with current levels.
Verint Systems stock has risen 12.55% in a year (source: Google Finance). According to tipranks.com, 4 analysts has covered the stock while recommending a “Strong Buy”. Verint Systems has an average price target of $43.25, which is a further upside of 9.36%.