NEW YORK (TheStreet) -- Shares of Verint Systems (VRNT) are falling by 14.73% to $30 at the start of trading on Wednesday morning, after the actionable intelligence solutions company reported its 2016 fourth quarter earnings, which missed analysts' expectations for the period.
The company reported adjusted earnings of 90 cents per diluted share on revenue of $280.8 million for the three month period ended January 31, 2016.
Analysts had forecast for earnings of $1.16 per share on revenue of $318.5 million for the latest quarter.
"Despite under performance in Security Intelligence in Q4, we believe the need for sophisticated security intelligence solutions remains strong and the emerging market headwinds are temporary. In the current year, we expect growth in Enterprise Intelligence and longer-term, as emerging markets improve, we expect Security Intelligence to return to growth as well," company CEO Dan Bodner said in a statement.
The company's latest quarterly report resulted in rating downgrades to "hold" from "buy" at Deutsche Bank and to "underperform" from "neutral" at Credit Suisse.
Additionally, the software company announced that its board has authorized Verint to repurchase up to $150 million of common stock over the next two years.
Separately, TheStreet Ratings has set a "hold" rating and a score of C on Verint Systems stock. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: VRNT