Verint Systems Sinks on Missed Earnings

Verint Systems Inc. (NASDAQ: VRNT) reported its fiscal fourth-quarter financial results after the markets closed on Tuesday. The company said it had $0.90 in earnings per share (EPS) on $280.8 million in revenue. That compares to consensus estimates of $1.17 in EPS on revenue of $319.4 million.

In terms of outlook for fiscal 2017, the company expects total revenues to grow in the range of -2% to 2%, and for EPS to be similar to fiscal 2016. The company further predicts that its Enterprise Intelligence segment will have mid-to-high single-digit revenue growth, and that its Security Intelligence segment revenue is expected to decline by 10% to 15%. The consensus estimates call for EPS of $3.54 and $1.23 billion in revenue.

In addition, the board of directors authorized the repurchase up to $150 million of common stock over the next two years.

On the books, the company had cash and cash equivalents totaling $352.1 million at the end of the quarter, compared to $285.1 million in the same period of the previous year.

Dan Bodner, CEO and president of Verint, commented:

Despite under performance in Security Intelligence in Q4, we believe the need for sophisticated security intelligence solutions remains strong and the emerging market headwinds are temporary. In the current year, we expect growth in Enterprise Intelligence and longer-term, as emerging markets improve, we expect Security Intelligence to return to growth as well.

Shares of Verint traded down 13% at $30.59 late morning Wednesday, with a consensus analyst price target of $51.83 and a 52-week trading range of $29.76 to $66.45.