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

Zacks Equity Research

Veeva Systems Inc.’s VEEV first-quarter fiscal 2020 results are scheduled to release on May 29, after market closes. In the last reported quarter, the company delivered a positive earnings surprise of 12.5%. Further, it has an average four-quarter positive surprise of 13.9%.

Let’s take a look at how things are shaping up prior to this announcement.

Which Way Are Q1 Estimates Treading?

The Zacks Consensus Estimate for first-quarter earnings is pegged at 45 cents, suggesting an improvement of 36.4% from the year-ago quarter. The same for revenues is pegged at $238.7million, indicating growth of 22.1% from the year-ago reported figure.

Factors to Influence Q1

The company is likely to report higher revenues at its Subscription services segment in the to-be reported quarter. Strategic partnerships will bolster Veeva Systems’ customer base which in turn is likely to drive subscription revenues. For fiscal 2020, subscription revenues are anticipated to grow between 21% and 22%. Hence, we expect better-than-expected performance at this segment in first-quarter fiscal 2020.

Further, Veeva Systems’ focus on cloud-based services has been consistently driving the top line. Coupled with anticipated subscription services revenue growth, the company is likely to witness top-line growth in the to-be-reported quarter.

For first-quarter fiscal 2020, Veeva Systems anticipates total revenues between $238 million and $239 million. Further, for the quarter to be reported, the consensus mark for revenues stands at $239 million, indication an improvement of 21.9% from the year-ago reported figure.

The company boasts of unique solutions, which include Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData. Further, the company continues to benefit from its flagship Vault platform. Consequently, robust product portfolio is expected to aid the company’s overall performance in the to-be-reported quarter.

Veeva Systems’ core Professional Services is likely to witness strong results in first-quarter fiscal 2020, which in turn is expected to boost the overall results.

However, the company might have experienced increase in expenses that might restrict margin expansion.

Further, stiff competition and saturating life sciences market might mar the company’s overall performance in the to-be-reported 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

Here’s What the Quantitative Model Predicts:

Our proven Zacks model clearly shows that a company with a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chances of beating estimates if it also has a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Veeva Systems has a Zacks Rank #2 and an Earnings ESP of 0.00%, a combination that makes surprise prediction difficult.

Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks with Robust Q1 Shows

Following are the stocks that have reported solid results this earning season:

Stryker Corporation SYK delivered first-quarter 2019 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the Zacks Consensus Estimate. The stock carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DENTSPLY SIRONA Inc. XRAY reported adjusted earnings per share (EPS) of 49 cents in the first quarter of 2019, beating the Zacks Consensus Estimate of 38 cents. Revenues came in at $946.2 million and surpassed the Zacks Consensus Estimate of $917.1 million. The stock carries a Zacks Rank #2.

CONMED Corporation CNMD reported first-quarter 2019 adjusted earnings per share of 57 cents, which beat the Zacks Consensus Estimate of 54 cents. Revenues were $218.4 million, surpassing the Zacks Consensus Estimate of $213 million. The stock carries a Zacks Rank of 2.

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Veeva Systems Inc. (VEEV) : Free Stock Analysis Report
 
Stryker Corporation (SYK) : Free Stock Analysis Report
 
CONMED Corporation (CNMD) : Free Stock Analysis Report
 
DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report
 
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