Verint Systems Inc. | $VRNT Stock | Shares Shoot Up On Better Than Expected Earnings


Verint Systems Inc. (NASDAQ: VRNT)



Verint Systems Inc. (VRNT), a global intelligence solutions and value-added services company yesterday reported their fourth quarter and full year 2016 financial results. Verint reported fourth quarter adjusted earnings of $0.90 per share which beat analyst expectations of $0.86 per share. Verint reported fourth quarter revenues of $295.9 million which beat analyst expectations of $294.1 million.


Verint Systems Inc. CEO’s Comments

“Our fourth quarter is typically our strongest quarter of the year and we are pleased with our strong sequential and year-over-year revenue increase in Q4 in both Customer Engagement and Cyber Intelligence,” said Dan Bodner, Verint CEO and President. “In Customer Engagement, fourth quarter revenue increased 8% sequentially and 6% year-over-year on a constant currency basis. We continue to expand our portfolio with a flexible hybrid cloud deployment strategy. We are pleased with our progress and expect our cloud revenue to increase more than 25%, driving mid-single digit revenue growth in the current year for Customer Engagement,” “In Cyber Intelligence, fourth quarter revenue increased 26% sequentially and 7% year-over year on a constant currency basis reflecting a better global spending environment and increasing demand for our cyber intelligence solutions. Our strong finish to the year, and recent business activity, has contributed to our improved outlook of high-single digit revenue growth in the current year for Cyber Intelligence,” concluded Bodner.  Business Wire


VRNT Technical Analysis

Verint Systems

VRNT opened trading yesterday at $39.85 which was down from the previous day’s trading close of $40.00. VRNT closed trading yesterday at $39.55 and spiked up after market to $42.55, equivalent to a 8% increase from the closing price. Taking a look at the daily chart we can see that the last time VRNT traded above these levels we have to go back to December 2nd, 2015 when it traded at $46.46.

Taking a closer look at the daily chart we can see that before the spike up VRNT had already been in an overall upward trend dating back to December 8th, 2016 when it traded at $34.45. VRNT has a float of 61.85 million shares and traded 1.75 times the normal daily trading volume on Tuesday.

For trading purposes, I would like to see VRNT open trading on Wednesday above $41.50 and if it does I would be looking to take place my limit order for a long position at the bell but ideally I would like to see the MACD become over sold first. My stop order would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up. I probably won’t use a market order due to the volatility and wide spreads this stock can have.


Company Profile

Verint Systems Inc. provides actionable intelligence solutions and value-added services worldwide. Its Enterprise Intelligence Solutions segment provides customer analytics solutions, including speech, text, and engagement analytics, as well as enterprise feedback management, and identity authentication and fraud detection solutions; and engagement management solutions, such as employee desktop, case and knowledge management, email and whitemail management, live chat and co-browse, communities, and social engagement solutions, as well as voice and mobile self-services and Web self-services.

This segment also provides workforce optimization solutions comprising quality management, recording, workforce management, and desktop and process analytics, as well as performance management, including scorecards, e-learning, coaching, and gamification. The company’s Cyber Intelligence Solutions segment offers cyber security, network intelligence, off-air intelligence, Web intelligence, fusion intelligence, and lawful interception compliance solutions.

Its Video and Situation Intelligence Solutions segment provides situational awareness platform, enterprise video management software, video analytics, edgeVMS, and public safety media recorder solutions. The company also offers a range of customer services, including implementation and training, consulting and managed, and maintenance support services, as well as mobile device tracking solutions for security applications.

It serves government, law enforcement, transportation, critical infrastructure, and commercial organizations, as well as insurance, banking and brokerage, telecommunication, media, retail, travel, and hospitality industries. The company sells its solutions through its direct sales team; and through indirect channels, such as distributors, systems integrators, value-added resellers, and original equipment manufacturer partners. Verint Systems Inc. was founded in 1994 and is headquartered in Melville, New York.  Yahoo Finance