Please ensure Javascript is enabled for purposes of website accessibility

Why Verint Systems Inc. Stock Jumped 14.9% in March

By Steve Symington - Apr 12, 2017 at 9:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The business and security analytics specialist temporarily popped after a strong quarterly report late last month. Here's what investors need to know.

What happened

Shares of Verint Systems Inc. (VRNT 1.62%) rose 14.9% in the month of March, according to data provided by S&P Global Market Intelligence, thanks to the business and security analytics company's solid fiscal fourth-quarter results.

So what

After enjoying modest gains with only a few days left in the month, Verint stock popped 10% on March 29, 2017 after the company confirmed that, for its fourth quarter ended Jan. 31, 2017, revenue climbed 5.4% year over year, to $295.9 million. Meanwhile, adjusted net income remained roughly flat at $56.6 million, or $0.90 per share. None of those figures look impressive at first glance, but analysts were only anticipating revenue and adjusted net income of $294.6 million and $0.86 per share, respectively. 

Connected world concept

IMAGE SOURCE: GETTY IMAGES.

Now what

What's more, Verint offered guidance for revenue in the current fiscal year to be $1.14 billion, plus or minus 2%, or slightly above the $1.13 billion Wall Street was anticipating. More importantly within that, Verint increased its outlook to call for high-single-digit percent revenue growth in its cyber intelligence business. And on the bottom line, Verint expects earnings to grow at a slightly faster rate than revenue thanks to margin expansion. 

All things considered, Verint's results weren't exactly jaw-dropping, which could explain why the stock has given up some of last month's gains so far in April. But they were certainly strong enough to exceed the modest expectations of Wall Street. And it's hard to blame investors for bidding up Verint stock last month in response.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Verint Systems Inc. Stock Quote
Verint Systems Inc.
VRNT
$43.40 (1.62%) $0.69

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
322%
 
S&P 500 Returns
113%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.