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Category: Stock Market and Verint
Date: 8 September 2019 Stock Price: $45.59 We take a look at the 2nd quarter earnings release of their 2020 fiscal year of Verint, a global leader in actionable intelligence.
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About Verint
Verint (Nasdaq: VRNT) is a global leader in Actionable Intelligence solutions that empower organizations with services help organizations of all sizes and across many industries make more informed, timely, and effective decisions.
Since our founding over two decades ago, we have built domain expertise in the areas of customer engagement and cyber intelligence. Today, we have established leadership positions in our respective markets by developing highly-scalable, enterprise-class software and services with advanced, integrated analytics for both structured and unstructured information.
The image below shows the highlights of Verint's 1st half of 2020 fiscal year
Since our founding over two decades ago, we have built domain expertise in the areas of customer engagement and cyber intelligence. Today, we have established leadership positions in our respective markets by developing highly-scalable, enterprise-class software and services with advanced, integrated analytics for both structured and unstructured information.
The image below shows the highlights of Verint's 1st half of 2020 fiscal year
Financial overview of Verint's latest earnings report
The numbers we are interested in (for the quarter):
- Revenue: $324.305 million (up from $306.327 million from the same quarter of the previous year)
- Total cost of Revenue: $116.411 million (up from $113.307 million for the same quarter of the previous year)
- Net income: $10.558 million (down from from $21.980 billion for the same quarter of the previous year)
- Diluted earnings per share: $0.16 (down from $0.33 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding:67.519 million (down from 65.840 million for the same quarter of the previous year)
- PE ratio: 75 (based on the earnings per share for the current quarter being reported for full fiscal year)
- Cash and cash equivalents: $388.546 million
- Cash and cash equivalents per share: $5.74
- Cash and cash equivalents makes up 12.5% of Verint's current market capital
- Cash and cash equivalents makes up 13.2% of Verint's total assets
- Total shareholders' equity of Best Buy': $1.287 billion
- Shareholders' equity per share: $19.06
- Accounts receivable: $349.161 million (down from $375.663 million for the same quarter of the previous year)
- Accounts receivable makes up 11.9% of Verint's total assets
- Accounts receivable declined by -7.05% over the last year
- Cash generated from operations (for 6 months): $16 million
- Cash generated from operations per share: $0.23
- Cash generated from operations per share: $0.23
Verint's management commentary on the results and earnings guidance
MELVILLE, N.Y., September 4, 2019 - Verint® Systems Inc. (NASDAQ: VRNT), a global Actionable Intelligence® leader, today announced results for the three and six months ended July 31, 2019 (FY2020). “We are pleased with our second quarter and first half results which reflect our strong innovation and market leadership. In Customer Engagement, we continue to execute well on our Cloud First initiative with strong cloud revenue growth and large enterprise wins. In Cyber Intelligence, our strategic initiative to unbundle and productize our data mining software is tracking well ahead of plan and resulted in significant gross margin expansion. Overall, we continue to accelerate innovation and evolve our business models which we believe is resonating well with our customers and large partner network,” said Dan Bodner, CEO
Our non-GAAP outlook for revenue and EPS for the year ending January 31, 2020 is as follows:
Our non-GAAP outlook for revenue and EPS for the year ending January 31, 2020 is as follows:
- Revenue: $1.375 billion with a range of +/- 2%
- Reflects 10.5% year-over-year growth
- EPS: $3.65 at the midpoint of our revenue guidance
- Reflects 14% year-over-year growth
Verint (NASDAQ: VRNT) stock price history
The image below, obtained from Google shows the stock price performance of Verint over the last 5 years. And its been a pretty volatile and largely negative period for the group, with the stock price declining from around $55 a share 5 years ago to the $45.59 it is trading at now. The stock is also trading a lot closer to its 52 week low than it is to its 52 week high which shows short term sentiment towards the stock is negative.
Recent coverage of Verint's
Below an extract of coverage on Verint Systems by Zacks after the publication of Verint Systems's latest earnings report
Verint Systems (VRNT - Free Report) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 2.50%. A quarter ago, it was expected that this maker of software for analyzing intercepted communications would post earnings of $0.62 per share when it actually produced earnings of $0.73, delivering a surprise of 17.74%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times. Verint, which belongs to the Zacks Computer - Software industry, posted revenues of $331.32 million for the quarter ended July 2019, missing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $308.48 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Verint shares have added about 25.2% since the beginning of the year versus the S&P 500's gain of 15.9%.
The original article on Zacks can be found here
Verint Systems (VRNT - Free Report) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 2.50%. A quarter ago, it was expected that this maker of software for analyzing intercepted communications would post earnings of $0.62 per share when it actually produced earnings of $0.73, delivering a surprise of 17.74%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times. Verint, which belongs to the Zacks Computer - Software industry, posted revenues of $331.32 million for the quarter ended July 2019, missing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $308.48 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Verint shares have added about 25.2% since the beginning of the year versus the S&P 500's gain of 15.9%.
The original article on Zacks can be found here
Verint (NASDAQ: VRNT) latest stock valuation
So what are Verint stock worth? Following the latest earnings report and guidance released by Verint our valuation models set a target price of $62 a stock on Verint. We therefore feel the stock is undervalued at its current price. We expect the stock to edge upwards in coming weeks and months to closer to our target price (full value price) of $62