Cognyte Software Ltd. (NASDAQ:CGNT) shares plunged more than 28% on Tuesday, following the company’s reported disappointing Q1 results, with EPS of ($0.79) coming in significantly worse than the Street estimate of $0.10. Revenue was $86.7 million, compared to the Street estimate of $112.6 million, as the company blamed internal execution issues as well as a number of other issues for the quarter.
According to the analysts at Wedbush, the company’s story has been highlighted by execution shortfalls, longer sales cycles and countless challenges, noting that the most troubling point for them is that the company was unable to guide for Q2/23 and the full 2023-year. According to the analysts, this means that management may still not have their arms around the sales execution and headwinds. The analysts lowered their price target on the company’s shares to $5 from $9, while reiterating their neutral rating.