Shares of Cognyte Software saw a significant increase after the company raised its full-year guidance and narrowed its second-quarter loss. The stock experienced a 20% surge, reaching $5.55 in early trading on Tuesday. Moreover, Cognyte’s shares have risen by an impressive 78% year-to-date, bringing them into positive territory for the last 12 months.
Cognyte, a leading provider of security analytics software, has revised its expectations for the year, now projecting a per-share adjusted loss of 33 cents on approximately $307 million in revenue. This is an improvement from their earlier forecast, which predicted a 60-cent per-share adjusted loss on $300 million in revenue. It is important to note that these figures exclude the amortization of intangible assets and stock-based compensation.
In terms of the second quarter, Cognyte reported a loss of $9.4 million, or 13 cents per share, compared to $28.9 million, or 43 cents per share, during the same period last year. However, when excluding one-time items, the adjusted loss was 9 cents per share. This result surpassed expectations, as two analysts surveyed by FactSet had predicted a loss of 21 cents per share.
While revenue did experience a decline, dropping to $77.1 million from $81.1 million, it still exceeded analyst forecasts of $73.9 million, according to FactSet data.
Overall, Cognyte Software is demonstrating positive growth and improved financial performance. With their updated projections and narrower losses, the company is well-positioned to continue its upward trajectory in the industry.