Verint Systems Shares Jump as Second Quarter Results Beat Expectations

Shares in Verint Systems (VRNT), a supplier of security intelligence solutions, surged in post-market trading after the firm said late on Wednesday that its focus on “actionable intelligence innovation” had underpinned revenues and adjusted earnings in its fiscal second quarter which beat analysts’ expectations.

Group sales rose to $306.3 million in the three months to July 31, from $274.8 million a year ago, comfortably ahead of the $295.8 million average analyst estimate compiled by Capital IQ. Adjusted earnings per share also increased to $0.76 from $0.61 a year earlier, surpassing the $0.62 market consensus.

“Our results were driven by our focus on actionable intelligence innovation – including analytics, AI, and automation technologies – in customer engagement and cyber intelligence,” Verint Systems Chief Executive Officer Dan Bodner said in an earnings statement. The “strong revenue growth was accompanied by continued margin expansion,” he noted.

Looking ahead into the fiscal year 2018-19, the firm said that it now anticipates sales of $1.24 billion with a margin of error of 2% either way, as its cyber intelligence segment is expected to grow at a faster pace of 10% versus a 7% revenue growth seen at the customer engagement unit. That revenue forecast beat an analyst estimate of $1.23 billion.

Verint sees full-year earnings per share coming in at $3.15, which is also above the Street’s view of $3.12.

Shares of Verint climbed more than 12% in after-market trading late on Wednesday.