NEW YORK (TheStreet) -- Shares of Verint Systems (VRNT - Get Report) were climbing 8.16% to $38.03 on heavy trading volume late Thursday morning after the company posted higher-than-anticipated earnings for the 2016 second quarter.
After yesterday's closing bell, the Melville, NY-based software company reported adjusted earnings of 57 cents per share, above analysts' estimates of 54 cents per share.
Revenue for the quarter was $261.9 million, below Wall Street's forecasts of $264.7 million.
For the full year, Verint sees earnings of $2.85 per share on revenue of about $1.11 billion. Analysts are looking for earnings of $3 per share on revenue of $1.12 billion.
Credit Suisse raised its price target on the stock to $34 from $32 and maintained its "underperform" rating following the results.
"VRNT's F2Q results were largely OK, with total revenue roughly in line with Street/guidance (albeit over a low bar)," the firm wrote in a note.
Security revenue continues to be weak, but the announcement of a new $200 million cyber contract could boost the shares despite management guiding down full-year earnings per share, Credit Suisse added.
The firm continues to have concerns that Verint's current challenges appear to be more structural or at least longer-term rather than cyclical and short-term. This is due to: a secular shift to the cloud, share loss to competition and/or a lack of demand and dependence on mega-deals in cyber to grow organically.
More than 1.82 million of the company's shares traded so far today vs. its average volume of 409,445 per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
But the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Recently, 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