Earnings To Watch: Veeva Systems (VEEV) Reports Q3 Results Tomorrow
Healthcare software provider Veeva Systems (NASDAQ:VEEV) will be reporting earnings tomorrow after market hours. Here's what investors should know.
Last quarter Veeva Systems reported revenues of $590.2 million, up 10.5% year on year, beating analyst revenue expectations by 1.4%. It was a mixed quarter for the company, with a significant improvement in its gross margin but underwhelming revenue guidance for the next quarter.
Is Veeva Systems buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Veeva Systems's revenue to grow 11.5% year on year to $616 million, slowing down from the 16% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.29 per share.
The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing thirteen upward and seven downward revisions over the last thirty days.The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.5%.
Looking at Veeva Systems's peers in the vertical software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Doximity delivered top-line growth of 11.2% year on year, beating analyst estimates by 4.1% and Agilysys reported revenues up 22.8% year on year, exceeding estimates by 3.1%. Doximity traded up 26.6% on the results, and Agilysys was up 21.7%.
Read our full analysis of Doximity's results here and Agilysys's results here.
There has been positive sentiment among investors in the vertical software segment, with the stocks up on average 14.7% over the last month. Veeva Systems is down 8.7% during the same time, and is heading into the earnings with analyst price target of $214.8, compared to share price of $179.1.
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The author has no position in any of the stocks mentioned.
