The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Verint Systems beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded significantly.
Margins increased across the board.
Verint Systems logged revenue of $230.1 million. The seven analysts polled by S&P Capital IQ predicted revenue of $226.3 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $212.0 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 $0.91. The eight earnings estimates compiled by S&P Capital IQ averaged $0.75 per share. Non-GAAP EPS of $0.91 for Q4 were 21% higher than the prior-year quarter's $0.75 per share. GAAP EPS of $0.43 for Q4 were 26% higher than the prior-year quarter's $0.34 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 70.0%, 310 basis points better than the prior-year quarter. Operating margin was 18.7%, 260 basis points better than the prior-year quarter. Net margin was 11.3%, 320 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $202.9 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $901.7 million. The average EPS estimate is $2.76.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Verint Systems is outperform, with an average price target of $35.07.
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.
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. The Motley Fool has no position in any of the stocks mentioned. 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.
More from The Motley Fool
Why Verint Systems Inc. Stock Jumped 14.9% in March
The business and security analytics specialist temporarily popped after a strong quarterly report late last month. Here's what investors need to know.
Why Eldorado Gold Corporation, Verint Systems, and Exar Corporation Jumped Today
In a mixed market, these winners climbed higher. Here's what investors need to know.
Why Verint Systems Inc. Shares Are on the Decline Today
The cybersecurity company is on a losing streak -- and this quarter's heavy losses didn't help its bleak outlook.