Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Needham analysts adjusted their outlook on Verint Systems (NASDAQ:VRNT), currently trading at $21.62, reducing the price target to $30 from the previous $40, while still maintaining a Buy rating on the company’s shares. According to InvestingPro analysis, Verint appears undervalued with a strong free cash flow yield of 11%. The change follows Verint’s fourth-quarter earnings release, which fell short of expectations due to delays in several large unbundled deals, particularly one that accounted for approximately $18 million of the $24 million shortfall.
The analysts noted that the missed earnings were not due to a loss to competitors but were instead attributed to timing issues, with the expectation that the deals would be reflected in the fiscal year 2026 (FY26) financials. InvestingPro data shows management’s confidence through aggressive share buybacks, while maintaining a healthy current ratio of 1.32. Verint’s management has subsequently provided a broader revenue guidance range for FY26, acknowledging the difficulties in predicting unbundled revenue recognition.
Despite the earnings miss, there was a positive aspect as Verint’s Annual Recurring Revenue (ARR) increased by 5% in the fourth quarter, surpassing the forecasted 4%. Additionally, following the Q4 results, the FY26 ARR guidance was revised upwards by $8 million. With the stock trading near its 52-week low and analysts setting targets up to $40, Needham’s analysts suggest that the post-earnings decline in Verint’s stock could be a buying opportunity, citing that while the company often faces challenges in forecasting unbundled revenue, the demand trends have shown sequential improvement throughout the fiscal year 2025 (FY25). Discover more insights and 7 additional ProTips for VRNT with an InvestingPro subscription.
In other recent news, Verint Systems reported its fourth-quarter 2025 earnings, which fell short of expectations. The company announced an earnings per share (EPS) of $0.99, missing the anticipated $1.27, while revenue came in at $254 million, below the forecasted $276.99 million. Despite these misses, Verint raised its fiscal 2026 annual recurring revenue (ARR) outlook to $768 million, indicating an 8% growth. Evercore ISI analyst Peter Levine adjusted Verint’s stock price target from $34 to $23, maintaining an In Line rating, following the mixed earnings report. Levine noted that the revenue shortfall was partly due to delays in unbundled expansion deals, which are expected to close in fiscal year 2026. Additionally, Verint’s focus on AI-powered customer experience solutions continues to resonate, with bundled SaaS revenue seeing a 17% increase for the full year. The company also reported a 30% year-over-year increase in SaaS ACV bookings for the quarter. Despite the earnings miss, Verint remains optimistic about its growth prospects, emphasizing its AI-driven solutions and flexible pricing model.
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