The 10-second takeaway
For the quarter ended Oct. 31 (Q3), Verint Systems missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins contracted, net margins dropped.
Verint Systems chalked up revenue of $201.5 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $210.3 million on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $199.4 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 $0.63. The seven earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. GAAP EPS of $0.04 for Q3 were 73% lower than the prior-year quarter's $0.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 69.4%, 290 basis points better than the prior-year quarter. Operating margin was 8.3%, 170 basis points worse than the prior-year quarter. Net margin was 2.7%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $234.3 million. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $857.5 million. The average EPS estimate is $2.58.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Verint Systems is outperform, with an average price target of $37.75.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Verint Systems makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Verint Systems to My Watchlist.