Israel's Cognyte misses Q4 operating income expectations

Overview

• Israeli investigative analytics software firm's Q4 revenue grew 12.4% yr/yr

• Q4 operating income missed analyst expectations despite improvement from prior year

• Company expanded share repurchase program and ended quarter with no debt

Outlook

• Cognyte expects fiscal 2027 revenue of $448 mln, +/- 3%

• Company sees fiscal 2027 adjusted EBITDA of about $68 mln at midpoint of revenue range

• Cognyte forecasts fiscal 2027 non-GAAP diluted EPS of $0.47 at midpoint of revenue range

Result Drivers

• SOFTWARE DEMAND - Company said increased demand for software solutions drove revenue growth in Q4

• OPERATIONAL EFFICIENCIES - Margin improvement attributed to scale and operational efficiencies, per company

• STRONG COLLECTIONS - Company said higher profitability and strong collections boosted operating cash flow

Company press release: ID:nBwbzW6CWa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Cognyte Software Ltd is $13.00, about 65% above its March 24 closing price of $7.88

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 26 three months ago

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