Cognyte Software Ltd (CGNT) is set to release its financial results for the third quarter of fiscal year of 2025 on Wednesday, December 11, 2024. The company will host a conference call at 8:30 a.m. ET, accompanied by a real-time webcast accessible through its Investor Relations section.
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Expected Q3 Earnings Report of Cognyte Software Ltd:
In the second quarter of FY25, Cognyte surpassed market expectations with an EPS of $0.05 compared to the anticipated $0.02 loss and reported a revenue of $84.4 million, representing a 9.5% year-over-year increase.
However, analysts and investors are keen to assess the company’s ability to sustain this momentum amid challenges such as high volatility and low earnings growth over the past five years.
Stock Target Advisor’s Analysis on Cognyte Software Ltd:
Stock Target Advisor’s analysis provides a mixed outlook on Cognyte. The stock is rated “Bearish,” with three positive signals, including positive cash flow and a high gross profit-to-asset ratio, juxtaposed with nine negative signals. The stock currently trades at $8.77, showing a 1-year capital gain of 53.19%.
However, long-term challenges such as a -27.7% five-year revenue growth rate, high volatility, and overpriced valuation metrics on earnings, cash flow, and free cash flow bases raise caution among investors.
Analysts from Evercore ISI and Wedbush Securities maintain a “Hold” or “Neutral” rating for the stock, with an average target price of $8.25. This reflects limited growth potential compared to the broader Software – Infrastructure sector, which has outperformed with a one-month return of 26.55%.
Conclusion:
Cognyte Software Ltd’s (CGNT) Q3 earnings report will be a critical event, offering insights into the company’s financial trajectory and market resilience. With a bearish outlook from Stock Target Advisor and analyst target prices suggesting modest downside, investors are advised to exercise caution while reviewing the company’s updates on December 11.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
