Verint (NASDAQ:VRNT), the customer engagement company, increased in pre-market trading after announcing better-than-expected third-quarter results. The company’s revenues declined by 3% year-over-year to $219 million and were above consensus estimates of $215.9 million.
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The company’s software-as-a-service (SaaS) annual recurring revenues (ARR) climbed by 11% year-over-year to $512.3 million. In addition, new SaaS annual contract value (ACV) bookings were $25 million at the end of the third quarter. Verint reported adjusted earnings of $0.65 per share compared to earnings of $0.69 per share in the same period last year. This surpassed analysts’ estimates of $0.57 per share.
Looking forward, Verint expects revenues of $910 million (+/- 2%) in FY24, with diluted earnings of $2.65 per share at the midpoint of its revenue guidance. This equates to an EPS growth rate of 5% year-over-year. Furthermore, the company’s SaaS revenues are projected to rise by 15% year-over-year.
Is Verint a Buy?
Turning to Wall Street, VRNT stock has a Moderate Buy consensus rating based on one Buy and one Hold assigned in the past three months. After a more than 30% slide on a year-to-date basis, the average VRNT price target of $32.50 implies an upside potential of 35.3% at current levels.
