Cognyte Software (NASDAQ:CGNT) reported better-than-expected results for the first quarter. The company also increased its guidance for Fiscal 2025. Despite the Q1 beat, CGNT stock declined 5.1% on Tuesday.
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CGNT is a cybersecurity analytics company that helps firms identify and mitigate security threats.
CGNT: Q1 Earnings Snapshot
The company reported an adjusted loss of $0.04 per share, narrower than the consensus estimate of a loss of $0.07. Also, it compared favorably with a loss of $0.11 in the year-ago quarter.
Moreover, Cognyte’s revenue came in at $82.7 million, up from $73.2 million in the year-ago quarter and slightly above the consensus estimate of $82 million. The top line benefited from about a 14% jump in software revenues.
It is worth highlighting that the company’s current remaining performance obligations (cRPO) increased to $312.4 million from $302.5 million at the end of the previous quarter. This reflects solid momentum in demand for Cognyte’s offerings in the near term.
Fiscal 2025 Guidance
Cognyte’s management raised guidance for Fiscal 2025.
The company expects revenues of about $344 million, plus or minus 2%, versus the prior outlook of $340 million. Further, the adjusted loss is expected to come in at $0.07, compared with the prior loss of $0.13.
What Is the Price Target for Cognyte Stock?
Following the Q1 earnings release, one analyst, Mike Cikos from Needham, raised concerns about the company’s long-term growth prospects. Cikos reiterated a Hold rating on the stock.
Wall Street is sidelined on Cognyte stock. With three Hold recommendations, it has a Hold consensus rating. Analysts’ average price target on CGNT stock is $7.75, implying an upside potential of 1.97%. Shares of the company have gained 18.2% year-to-date.
