Verint Systems Inc. (VRNT) fell short of analysts’ expectations for both earnings and revenue in the second quarter. The company reported earnings of 49 cents per share, missing the consensus estimate of 53 cents per share. Revenue also came in below expectations, reaching $210.170 million compared to the projected $212.840 million.
Despite the disappointing financial performance, Verint’s CEO, Dan Bodner, expressed optimism about the company’s AI strategy. He emphasized the company’s ability to deliver ‘AI Business Outcomes, Now’TM, claiming that Verint’s AI-powered bots are driving significant return on investment (ROI) for its customers. Bodner highlighted strong AI bookings growth and Bundled SaaS revenue growth fueled by AI in the second quarter. He believes the potential for AI in the contact center market is vast and still in its early stages, positioning Verint well for continued AI-driven growth in the coming months.
Following the earnings announcement, Verint’s stock price dropped 9.1% to $27.14 on Thursday. Several analysts adjusted their price targets for Verint shares. Evercore ISI Group’s Peter Levine maintained an In-Line rating but lowered the price target from $34 to $30. Jefferies analyst Samad Samana kept a Hold rating and reduced the price target from $32 to $28. TD Cowen analyst Shaul Eyal maintained a Buy rating but slashed the price target from $40 to $36.
Verint’s announcement of a new $200 million stock buyback program aims to boost shareholder value. The company’s commitment to AI and its efforts to improve its financial performance will likely be key factors influencing investor sentiment and the future direction of the stock.
