Verint Systems Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a mediocre week for Verint Systems Inc. (NASDAQ:VRNT) shareholders, with the stock dropping 16% to US$26.54 in the week since its latest quarterly results. It looks like a pretty bad result, all things considered. Although revenues of US$210m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 84% to hit US$0.02 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Verint Systems

Following last week's earnings report, Verint Systems' seven analysts are forecasting 2025 revenues to be US$933.0m, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 45% to US$0.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$936.3m and earnings per share (EPS) of US$1.25 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

It might be a surprise to learn that the consensus price target fell 7.1% to US$34.67, with the analysts clearly linking lower forecast earnings to the performance of the stock price. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Verint Systems, with the most bullish analyst valuing it at US$40.00 and the most bearish at US$28.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Verint Systems' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Verint Systems is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.9% annualised growth until the end of 2025. If achieved, this would be a much better result than the 5.0% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 12% annually for the foreseeable future. Although Verint Systems' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Verint Systems' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Verint Systems' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Verint Systems analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Verint Systems .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.