Cognyte Software (CGNT) Stock Plummets 30% on Disappointing Earnings

  • Cognyte Software (CGNT) reported a first-quarter loss and revenue miss.
  • CEO Elad Sharon still seems hopeful, but the company offered no forward fiscal guidance in the quarterly report.
  • CGNT stock dropped 30% this morning after the earnings announcement.
software stocks: Coding software developer work with augmented reality dashboard computer icons of scrum agile development and code fork and versioning with responsive cybersecurity
Source: Shutterstock

In a fresh press release, investigative analytics software company Cognyte Software (NASDAQ:CGNT) just disclosed the company’s Q1 results for the three months ended April 30. Now, the prevailing sentiment on Wall Street is clearly negative. CGNT stock is down 30% as of this writing.

CEO Elad Sharon assured shareholders that Cognyte Software has “more than two decades” of experience with “managing through periods of volatility.” Yet, today’s price action will test the resolve of even the sturdiest investors.

How bad were the results? Starting with the top line, the company posted $86.4 million in Q1 GAAP revenue. That missed the analyst consensus estimate by nearly 23%. And it only gets worse from there.

Reportedly, analysts had anticipated that Cognyte Software would report quarterly earnings of 12 cents per share. As it turns out, though, the actual result was a gut-wrenching loss of 79 cents per share. This is a far cry from the prior-year quarter’s earnings of 20 cents per share.

What’s Happening with CGNT Stock?

Given the drastic bottom-line miss, it’s understandable why some investors may choose to divest their Cognyte Software shares. However, the negative reaction has been quite severe, with CGNT stock sliding early in today’s trading session.

These results are undoubtedly painful for long-term investors, as shares have already tumbled from a 52-week high of $28.55. Now with CGNT stock below $5, shareholders have a lot of catching up to do.

In the report, CEO Elad Sharon admitted he’s “disappointed” with the quarterly results. The executive cited 2022’s usual suspects, saying that “slow pipeline conversion” and supply-chain issues impacted the quarter.

Looking ahead, Cognyte did not provide any forward fiscal guidance. However, Sharon continues to “believe in the long-term opportunity” and says the company has “taken actions” to improve its “execution and cost structure in the current environment.” Whether this hopeful attitude will be enough to quell concerns remains to be seen.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.


Article printed from InvestorPlace Media, https://investorplace.com/2022/06/cognyte-software-cgnt-stock-plummets-30-on-disappointing-earnings/.

©2022 InvestorPlace Media, LLC