This Top Pick beat last quarter’s earnings estimates by nine cents, and analysts say the company’s guidance for next year is “conservative”.
Verint Systems (VRNT)
from The Periscope Report
Our top stock pick for 2015 is Verint Systems (VRNT), which creates “Actionable Intelligence” solutions that address three important challenges: Customer Engagement Optimization; Security Intelligence; and Fraud, Risk, and Compliance.
The software allows customers to capture large amounts of information from numerous data types and sources, use analytics to glean insights from the information, and leverage the resulting Actionable Intelligence to help achieve their customer engagement, enhanced security, and risk mitigation goals.
For the fiscal year ended January 2015, management raised its revenue guidance for the third straight quarter. Revenues are expected in the range of $1.14 - $1.165 billion, up from prior guidance of $1.125 - $1.175 billion. EBITDA will be about $280 million, or a profit margin of 24%. Earnings guidance for fiscal 2015 is $3.35 - $3.50 per share. Management introduced guidance for fiscal 2016, with revenues in the range of $1.225 - $1.275 billion, and net earnings of $3.65 - $3.85 per share.
Looking at the mid-points of guidance, the implied earnings growth rate for fiscal 2016 is 9%, however, we believe the guidance for fiscal 2016 is conservative, as management has consistently raised its guidance during each of the last two years.
VRNT has established itself as the leader for detecting and stopping malware and cyber attacks. VRNT has more “big data intelligence” than any competitor. The market opportunity for malware and cyber security is $6 billion. The company has the best software in the industry for thwarting cyber attacks and detecting terrorist activity. These are two good reasons to buy this market dominator.
Tom Byrne, The Periscope Report, 4025 Sunset Ridge Drive, Canyon Ferry Crossing, Helena,
MT 59602, 406-465-4663, January 13, 2015