FX.co ★ Verint Stock Climbs As Q3 Profit Beats Market, Backs Positive FY25 Outlook

Verint Systems Inc. (VRNT), specializing in customer experience automation, announced a rise in net earnings for its third quarter on Wednesday, benefiting from income tax advantages and increased sales. The adjusted earnings exceeded analysts’ predictions, although pre-tax profits fell short compared to the previous year.

Looking forward to the fiscal year 2025, Verint maintained its forecast for improved outcomes, though it anticipates earnings will not meet market projections.

Following the announcement, Verint's shares rose significantly, climbing 22.22% in after-hours trading. In pre-market activity, the shares are currently priced at $32.00, marking a 23.22% increase.

In the third quarter, the company's net income grew to $28.71 million or 39 cents per share, compared to $12.61 million or 12 cents per share a year earlier. This included income tax benefits of $10.67 million, contrasting with a tax provision of $12.93 million in the prior year.

Adjusted earnings per share dropped to $39.20 million or 54 cents per share, down from $47.98 million or 65 cents per share in the same quarter last year. Seven analysts surveyed by Thomson-Reuters had predicted the company would report a profit of 43 cents per share, typically excluding one-off items from their estimates.

Net revenue rose by 3%, totaling $224.19 million compared to $218.54 million the previous year. This increase was driven by the early realization of unbundled SaaS renewal revenue, which added $14 million against prior guidance for fourth-quarter arrivals.

Looking ahead to fiscal 2025, the company maintains a profit outlook of $2.90 per share, which is 1 cent lower than analysts' projections. Verint anticipates a 6% year-over-year growth in earnings.

The company expects net revenue to be approximately $933 million, with a variance of plus or minus 2%, reflecting a 5% year-over-year growth, aligning with analyst expectations.

During its upcoming investor day on January 14, Verint plans to discuss AI-driven business outcomes and review its financial models. Additionally, the company intends to provide guidance for the fiscal year 2026.