Veeva Systems (VEEV) to Post Q1 Earnings: What's in Store?
Veeva Systems Inc. VEEV is scheduled to release first-quarter fiscal 2023 results on Jun 1, after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 2.3%. It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 9.6%.
Q1 Estimates
The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at 92 cents, suggesting an improvement of 1.1% from the year-ago quarter. The same for revenues stands at $495.5 million, indicating growth of 14.3% 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.
The company’s first cloud-based content management system, built specifically for life sciences — Veeva Vault — is likely to have added new Vault customers in the quarter to be reported.
Strength across each Vault application area, including sustained momentum in more established products and early success for new products, may have favored the to-be-reported quarter’s performance.
Veeva Systems Inc. Price and EPS Surprise
Veeva Systems Inc. price-eps-surprise | Veeva Systems Inc. Quote
Veeva Systems has been registering a robust adoption for its products over the past few months. The company, in March, announced that its Veeva Development Cloud has been selected by Boehringer Ingelheim. The selection is expected to aid the latter in driving end-to-end processes and smooth information sharing for greater speed in the delivery of innovative therapies.
In February, Veeva Systems announced that Idorsia Pharmaceuticals Ltd has expanded its use of Veeva Vault Clinical Suite applications. This expansion includes Veeva Vault Clinical Data Management Suite (CDMS) for electronic data capture and coding.
Veeva Systems, in December 2021, announced that the hematology/oncology therapy developer, PharmaEssentia, has adopted its Veeva Data Cloud to support the launch of BESREMi — the latest therapy for polycythemia vera, a rare type of blood cancer.
In December 2021, Veeva Systems announced that it has acquired Veracity Logic — a provider of cloud software for randomization and trial supply management (RTSM). The Veracity Logic team will join Veeva to deliver industry-leading software and services, helping companies simplify complex processes and expedite clinical trials.
These positive developments are likely to get reflected in the fiscal first-quarter results.
However, escalating expenses on the operational side might have weighed on Veeva Systems’ margins.
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 +0.36%. 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 #2.
Peer Releases
Some better-ranked stocks in the broader medical space that have announced quarterly results are Bio-Rad Laboratories, Inc. BIO, AMN Healthcare Services, Inc. AMN and Masimo Corporation MASI.
Bio-Rad, carrying a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $4.94, which beat the Zacks Consensus Estimate by 76.4%. Revenues of $700 million outpaced the consensus mark by 3.3%. You can see the complete list of today's Zacks #1 Rank stocks here.
Bio-Rad has historical earnings growth rate of 31.2%. BIO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 58.9%.
AMN Healthcare, sporting a Zacks Rank #1, reported first-quarter 2022 adjusted EPS of $3.49, which beat the Zacks Consensus Estimate by 7.4%. Revenues of $1.55 billion outpaced the consensus mark by 3.7%.
AMN Healthcare has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 15.6%.
Masimo reported first-quarter 2022 adjusted EPS of 93 cents, which surpassed the Zacks Consensus Estimate by 1.1%. Revenues of $304.2 million outpaced the Zacks Consensus Estimate by 3.6%. It currently carries a Zacks Rank #2.
Masimo has an earnings yield of 3.4% against the industry’s negative yield. MASI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.4%.
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