Veeva Systems Inc. (NYSE: VEEV) will release its fiscal Q2 202s financial results on Wednesday, September 1, 2021. Bulls expect the company's earnings to top estimates and offer a positive outlook or forecasted earnings growth for the coming quarter.
What to look for
The company has an exceptional product portfolio that comprises Veeva CRM, Veeva Vault, Veeva OpenData, and Veeva network, all of which are expected to drive Q2 performance. In addition, Veeva Vault, the company's maiden cloud-based content management solution, developed for life sciences, is expected to have added more customers during the quarter.
Most importantly, strengths across all Vault application areas, in addition to the growing momentum in established products plus the success of new products, will drive performance during the quarter.
Earnings: Stockearning’s Estimated EPS for Veeva Systems’ fiscal Q2 2022 is $0.6 per share. Historical EPS Performance shows that the company has topped earnings estimates 11 times (91%) in the last 12 quarters and missed only once (8%). In fiscal Q1 2022, the company beat its earnings per share estimate of $0.54 per share by posting EPS of $0.67.
Revenue: The company expects revenue ranging from $450 million to $452 million in Q2 driven by solid performance across the Veeva Systems units, such as professional services and subscription services, among others. In Q1 2021, the company reported better than anticipated revenue results driven by exceptional performance across all its segments. The company reported total revenue of $434 million, a 29% YOY growth with subscription revenue of $341 million, up 26% YoY. As a result, Veeva Systems reported net income per diluted share of $0.71 and non-GAAP net income per diluted share of $0.91. for the full fiscal year ending January 31, 2022the company expects total revenue of between $1.815 billion and $1.825 billion.
Stock movement: Since the last earnings release Veeva Systems' stock price has gained 25.7%. In the past 32 quarters, the share price was UP in 19 quarters after earning release. Therefore, historical price action indicated a 59% chance of the shares going UP after the company releases its Q2 2022 results. As per Stockearning's Algorithm, the first day predicted move in share price after earnings release is 7%, while the predicted move on the seventh day following earnings release is 8%.
What analysts are saying
A month ago, RBC Capital analysts Rishi Jaluria initiated coverage on Veeva Systems with a "Buy" rating with a price target of $400. According to Rishi, the company has set a "gold standard" in the software market, citing his positive is pegged on the "deep domain expertise" from Veeva alongside other drives supporting revenue growth of more than 20% with an exceptional financial model.
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