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Veeva Systems (VEEV) to Post Q1 Earnings: What's in Store?

Zacks Equity Research

Veeva Systems Inc. VEEV is scheduled to release first-quarter fiscal 2021 results on May 28, after the closing bell.

In the last reported quarter, the company delivered a positive earnings surprise of 3.9%. Its earnings surpassed estimates in each of the trailing four quarters, the average beat being 9.6%.

Q1 Estimates

The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at 58 cents, suggesting an improvement of 16% from the year-ago quarter. The same for revenues is pegged at $325.2 million, indicating growth of 32.9% from the prior-year reported figure.

Factors to Note

Veeva Systems unique product portfolio, comprising Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData, might have driven the fiscal first-quarter performance.

Veeva Systems’ first cloud-based content management system, built specifically for life sciences — Veeva Vault — is likely to have added new Vault customers in the fiscal first quarter.

Veeva Systems Inc. Price and EPS Surprise

 

Veeva Systems Inc. Price and EPS Surprise

Veeva Systems Inc. price-eps-surprise | Veeva Systems Inc. Quote

Strength across each Vault application area, including continued momentum in more established products and early success for new products, may have contributed to the fiscal first-quarter performance.

Further, Veeva Commercial Cloud and Veeva Vault are likely to have driven Professional Service and Other segment’s revenues in the to-be-reported quarter. Additionally, Veeva Systems’ subscription revenues might have benefited from increase in bookings in the fiscal first quarter.

Possible strength in bookings and outperformance in services revenues are likely to get reflected in calculated billings in the to-be-reported quarter. In fact, the company anticipates calculated billings to be around $330 million in the fiscal first quarter.

Strong performance across Veeva Systems’ segments – Subscription Service and Professional Service and Others is likely to get reflected in the to-be-reported quarter’s revenues. Notably, the company expects revenues between $327 million and $328 million in first-quarter fiscal 2021.

In March, Veeva Systems announced that Veeva Data Cloud will provide support to the industry by bringing greater innovation and choice to the data market. Furthermore, Veeva Systems signed a multi-product deal with a top 20 pharma in Europe for Vault in the clinical and regulatory areas.

Management expects higher contribution from the Crossix and Physicians World buyouts in fiscal 2021, with the estimate ranging between $105 million and $110 million.

These positive developments are likely to have impacted the fiscal first-quarter performance.

However, intense competition across most of the product lines might have weighed Veeva Systems’ overall performance.

What Our Quantitative Model Suggests

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is the case here as you will see.

Earnings ESP: Veeva Systems has an Earnings ESP of +2.74%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: It carries a Zacks Rank #3.

Key Picks

Some better-ranked stocks in the broader medical space that have already announced their quarterly results include Aphria Inc. APHA, Biogen Inc. BIIB and Eli Lilly and Company LLY.

Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents, beating the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million surpassed the consensus mark by 14.6%. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Biogen currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.

Eli Lilly reported first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.

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Biogen Inc. (BIIB) : Free Stock Analysis Report
 
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