The 10-second takeaway
For the quarter ended April 30 (Q1), Verint Systems met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margin dropped, operating margin dropped, and net margin expanded.
Verint Systems reported revenue of $196.6 million. The seven analysts polled by S&P Capital IQ expected sales of $196.4 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $176.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.53. The seven earnings estimates compiled by S&P Capital IQ predicted $0.50 per share. GAAP EPS were $0.16 for Q1 against -$0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 67.2%, 290 basis points worse than the prior-year quarter. Operating margin was 10.7%, 110 basis points worse than the prior-year quarter. Net margin was 5.1%, 520 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $211.4 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $871.6 million. The average EPS estimate is $2.64.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Verint Systems is outperform, with an average price target of $39.10.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.