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Zacks Investment Ideas feature highlights: Verint Systems
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For Immediate Release
Chicago, IL – September 8, 2017 – Today, Zacks Investment Ideas feature highlights Features: Verint Systems (Nasdaq:(VRNT - Free Report) – Free Report).
Not a Pure Play for A.I., But Close
Verint Systems(Nasdaq:(VRNT - Free Report) – Free Report) is a Zacks Rank #3 (Hold) but the Zacks Rank for this stock could be moving higher following a big beat and raise that was just posted. The company reported earnings after the close on September 6, posting revenues of $278M when $270M were expected. EPS came in at $0.61 when Wall Street was looking for just $0.47 so the beat was $0.14 or a 29% positive earnings surprise.
The company also provided some guidance for the fiscal year 2018 (FY18). The company sees EPS of $2.75 compared to the Wall Street estimate for $2.72 and revenues are expected to be in line with the consensus estimate of $1.14B.
Profile of VRNT
Yes, it was a good quarter with a slightly higher guide, but what is it exactly that the company does? Verint has over 10,000 customers in 180 countries and calls more than 80% of the Fortune 100 a client. It's Actionable Intelligence Platform has the capability to capture data, process it, analyze it and then engage and act. The company does this via two segments, the customer engagement segment, and the cyber intelligence segment.
The cyber intelligence segment is expected to grow revenue in the high single digits. The company has also noted that this revenue comes with a very high degree of retention (recurring revenues).
Right now, the margin profile for the intelligence segment is a drag on the over all margin profile for the company. With guidance telling us that earnings are expected to be higher on a consistent level of sales then margins must be improving in part of the company.
Zacks Rank #3 (Hold)
The stock is a Zacks Rank #3 (Hold) right now, but as the analysts tinker with their models, it is likely that we see earnings estimate revisions. If those revisions are positive, and they probably will be with the higher guidance, then we could see the Zacks Rank move higher for this stock.
The reason it is a Zacks Rank #3 (Hold) is due to the fact that there have been no earnings estimate revisions over the past 90 days.
Long Term View
As I think about this stock over the long term, I can only see growth ahead. The key will be to continuously improve margins. I see several big price targets from the covering analysts including a $48 target from RBC Capital Markets and a $47 target from Imperial. Of course, it doesn't hurt to be on the Goldman Sachs conviction buy list, which VRNT became part of on August 7.
Want more articles from this author? Go to Zacks.com on this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Brian Bolan is a Stock Strategist for Zacks.com.
He runs Stocks Under $10 Investor service where he looks for low priced stocks that are seeing positive earnings estimate revisions. This popular service has seen some strong early returns and offers a free trial via the Zacks Ultimate service.
Brian also runs the brand new Zacks Game Changers where he looks for stocks that are disrupting their industries and reaping big gains.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Verint Systems
For Immediate Release
Chicago, IL – September 8, 2017 – Today, Zacks Investment Ideas feature highlights Features: Verint Systems (Nasdaq:(VRNT - Free Report) – Free Report).
Not a Pure Play for A.I., But Close
Verint Systems(Nasdaq:(VRNT - Free Report) – Free Report) is a Zacks Rank #3 (Hold) but the Zacks Rank for this stock could be moving higher following a big beat and raise that was just posted. The company reported earnings after the close on September 6, posting revenues of $278M when $270M were expected. EPS came in at $0.61 when Wall Street was looking for just $0.47 so the beat was $0.14 or a 29% positive earnings surprise.
The company also provided some guidance for the fiscal year 2018 (FY18). The company sees EPS of $2.75 compared to the Wall Street estimate for $2.72 and revenues are expected to be in line with the consensus estimate of $1.14B.
Profile of VRNT
Yes, it was a good quarter with a slightly higher guide, but what is it exactly that the company does? Verint has over 10,000 customers in 180 countries and calls more than 80% of the Fortune 100 a client. It's Actionable Intelligence Platform has the capability to capture data, process it, analyze it and then engage and act. The company does this via two segments, the customer engagement segment, and the cyber intelligence segment.
The cyber intelligence segment is expected to grow revenue in the high single digits. The company has also noted that this revenue comes with a very high degree of retention (recurring revenues).
Right now, the margin profile for the intelligence segment is a drag on the over all margin profile for the company. With guidance telling us that earnings are expected to be higher on a consistent level of sales then margins must be improving in part of the company.
Zacks Rank #3 (Hold)
The stock is a Zacks Rank #3 (Hold) right now, but as the analysts tinker with their models, it is likely that we see earnings estimate revisions. If those revisions are positive, and they probably will be with the higher guidance, then we could see the Zacks Rank move higher for this stock.
The reason it is a Zacks Rank #3 (Hold) is due to the fact that there have been no earnings estimate revisions over the past 90 days.
Long Term View
As I think about this stock over the long term, I can only see growth ahead. The key will be to continuously improve margins. I see several big price targets from the covering analysts including a $48 target from RBC Capital Markets and a $47 target from Imperial. Of course, it doesn't hurt to be on the Goldman Sachs conviction buy list, which VRNT became part of on August 7.
Be sure to follow me on Twitter: @BBolan1
Want more articles from this author? Go to Zacks.com on this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Brian Bolan is a Stock Strategist for Zacks.com.
He runs Stocks Under $10 Investor service where he looks for low priced stocks that are seeing positive earnings estimate revisions. This popular service has seen some strong early returns and offers a free trial via the Zacks Ultimate service.
Brian also runs the brand new Zacks Game Changers where he looks for stocks that are disrupting their industries and reaping big gains.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.