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Headquartered in Melville, NY, Verint Systems Inc. (VRNT - Free Report) is a leading provider of analytic solutions for communications interception, digital video security and surveillance, and enterprise businesses.The company also specializes in “Actionable Intelligence” solutions. Actionable Intelligence helps to enable users and businesses to anticipate and respond in ways that help boost growth.
Q4 Results Impressed Wall Street
Last month, shares of Verint jumped over 13% after the software company reported fourth quarter results.
Despite reporting revenues that fell short of analyst estimates (though the top line managed to grow 3.6% year-over-year), non-GAAP earnings of $1.08 per share easily beat the Zacks Consensus and was up from $1.05 from the prior-year period.
The big standout from the report was Verint’s raised guidance. The company now expects to produce revenue growth of 8% and non-GAAP EPS growth of 14% for Q1. And for fiscal 2020, earnings and revenues are projected to be $3.60 and $1.37 billion (plus or minus 2%), coming in well ahead of what analysts were expecting.
Year-to-date, shares of VRNT have increased about 45% compared to the S&P 500’s return of roughly 18%.
Earnings estimates have since been rising, and the stock is now a Zacks Rank #1 (Strong Buy).
For the current fiscal year, five analysts have revised their estimates upwards in the past 60 days, and the Zacks Consensus Estimate has jumped nine cents during that same time period. Earnings growth is expected to be positive this year, growing 12.8% over the prior-year period.
2021 looks pretty strong too, with earnings expected to grow over 11.7% year-over-year; next year’s consensus estimate has moved 45 cents higher from $3.79 to $4.04, with three upward revisions in the last 60 days.
Looking ahead, Verint expects its cloud business to be a huge growth factor for them over the next few years. Just in 2020, non-GAAP cloud revenue could reach $250 million, up 40%. And, the company sees 30% to 40% CAGR for its cloud business over the next three years.
So, thanks bullish guidance, soaring sales and a strong cloud acceleration, the future is looking promising for Verint Systems. If you’re an investor looking for a tech stock to add to your portfolio, make sure to keep VRNT on your shortlist.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Bull of the Day: Verint Systems (VRNT)
Headquartered in Melville, NY, Verint Systems Inc. (VRNT - Free Report) is a leading provider of analytic solutions for communications interception, digital video security and surveillance, and enterprise businesses.The company also specializes in “Actionable Intelligence” solutions. Actionable Intelligence helps to enable users and businesses to anticipate and respond in ways that help boost growth.
Q4 Results Impressed Wall Street
Last month, shares of Verint jumped over 13% after the software company reported fourth quarter results.
Despite reporting revenues that fell short of analyst estimates (though the top line managed to grow 3.6% year-over-year), non-GAAP earnings of $1.08 per share easily beat the Zacks Consensus and was up from $1.05 from the prior-year period.
The big standout from the report was Verint’s raised guidance. The company now expects to produce revenue growth of 8% and non-GAAP EPS growth of 14% for Q1. And for fiscal 2020, earnings and revenues are projected to be $3.60 and $1.37 billion (plus or minus 2%), coming in well ahead of what analysts were expecting.
VRNT is On the Move
Verint Systems Inc. Price and Consensus
Verint Systems Inc. Price and Consensus | Verint Systems Inc. Quote
Year-to-date, shares of VRNT have increased about 45% compared to the S&P 500’s return of roughly 18%.
Earnings estimates have since been rising, and the stock is now a Zacks Rank #1 (Strong Buy).
For the current fiscal year, five analysts have revised their estimates upwards in the past 60 days, and the Zacks Consensus Estimate has jumped nine cents during that same time period. Earnings growth is expected to be positive this year, growing 12.8% over the prior-year period.
2021 looks pretty strong too, with earnings expected to grow over 11.7% year-over-year; next year’s consensus estimate has moved 45 cents higher from $3.79 to $4.04, with three upward revisions in the last 60 days.
Looking ahead, Verint expects its cloud business to be a huge growth factor for them over the next few years. Just in 2020, non-GAAP cloud revenue could reach $250 million, up 40%. And, the company sees 30% to 40% CAGR for its cloud business over the next three years.
So, thanks bullish guidance, soaring sales and a strong cloud acceleration, the future is looking promising for Verint Systems. If you’re an investor looking for a tech stock to add to your portfolio, make sure to keep VRNT on your shortlist.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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