Shares of Verint Systems (VRNT) skyrocketed in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2024. Earnings per share came in at $0.54, which beat analysts’ consensus estimate of $0.43 per share. In addition, sales increased by 2.6% year-over-year, with revenue hitting $224.19. This beat analysts’ expectations of $210.13 million. The results were driven by strong momentum in AI innovation, thanks to its open CX Automation Platform, according to CEO Dan Bodner.
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The platform supports a hybrid cloud model that allows customers to deploy AI-powered bots and achieve rapid results. In Q3, Verint saw 19% year-over-year growth in bundled SaaS revenue and a 37% increase in new SaaS ACV bookings for deals that excluded cloud conversions. Verint also announced the launch of its latest AI-powered bot as part of its platform improvements.
Furthermore, CFO Grant Highlander attributed the company’s “overachievement” in revenue to unbundled SaaS renewal revenue that came in during Q3 instead of Q4.
Guidance for FY 2025
Looking forward, management has provided the following guidance for FY 2025:
- Revenue of $933 million (+/- 2%), which was in line with analysts’ estimates
- Adjusted EPS of $2.90 at the midpoint compared to analysts’ estimates of $2.91
As we can see, the company’s outlook is basically as expected, which appears to be enough to enthuse investors today.
What Is the Price Target for VRNT Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on VRNT stock based on four Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 7% rally in its share price over the past year, the average VRNT price target of $39.50 per share implies 52.6% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
