We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Veeva Systems (VEEV) Q2 Earnings and Revenues Beat Estimates
Read MoreHide Full Article
Veeva Systems, Inc. (VEEV - Free Report) reported second-quarter fiscal 2021 adjusted earnings per share (EPS) of 72 cents, beating the Zacks Consensus Estimate by 12.5%. The metric surged 30.9% on a year-over-year basis.
The company’s revenues totaled $353.7 million, outpacing the Zacks Consensus Estimate by 4.1%. On a year-over-year basis, the top line improved 32.5%.
Segmental Details
Subscription Service
Fiscal second-quarter subscription service revenues summed $283.5 million, up 30% year over year.
Professional Service and Others
Professional Service revenues rose almost 41.5% to $70.2 million from the year-ago figure.
Per management, outperformance by Veeva Commercial Cloud and Veeva Vault drove revenues across all segments.
Margin Details
In the reported quarter, gross profit increased 30.4% year over year to $256.5 million. Gross margin was 72.5%, which contracted 117 basis points (bps).
Operating profit totaled $149.3 million, up 24.7% year over year. In the quarter under review, operating margin fell 264 bps to 42.2%.
Veeva Systems Inc. Price, Consensus and EPS Surprise
The company exited the fiscal second quarter with cash and cash equivalent of $795.8 million compared with $720.8 million at the end of the fiscal first quarter. Cumulative net cash provided by operating activities came in at $387.5 million, up from $336.8 million at the end of the year-ago period.
Guidance
For the third quarter of fiscal 2021, Veeva Systems expects revenues between $360 million and $362 million. The Zacks Consensus Estimate for the same stands at $347.3 million.
Adjusted EPS is projected between 66 and 68 cents. The Zacks Consensus Estimate for the metric is pegged at 63 cents.
Adjusted operating income is estimated between $138 million and $140 million.
For fiscal 2021, revenues are expected within $1.41-$1.42 billion, compared with the previously-issued range of $1.38-$1.39 billion. The Zacks Consensus Estimate for the same is pinned at $1.39 billion.
Adjusted EPS is expected in the range of $2.64-$2.67 versus the previous range of $2.50-$2.55. The Zacks Consensus Estimate for the same stands at $2.55.
Adjusted operating income is expected between $540 million and $545 million.
Wrapping Up
Veeva Systems ended the second quarter of fiscal 2021 on a strong note. The core Subscription business segment performed impressively. A raised guidance for the full year buoys optimism as well. Apart from these, the company continues to benefit from its flagship Vault platform. In fact, Veeva Vault’s customer count has increased manifold in recent times. Markedly, Veeva Systems’ unique solutions include Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData. The company’s new CRM Sunrise UI and Nitro look promising as well.
In Commercial Cloud, Veeva Systems secured a number of deals. The company is confident about growth in new markets, with products like EDC, Safety, Nitro and Vault. The addition of Veeva CRM Engage Meeting, new remote monitoring capabilities in Veeva SiteVault Free and Telehealth Metrics to the Crossix Data Platform raises optimism.
On the flip side, contraction of both margins in the quarter is a concern. Also, intense competition and a saturating life sciences market are concerning. Volatility in the foreign currency exchange rate is an added woe.
Zacks Rank and Key Picks
Veeva Systems currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. (TMO - Free Report) , PerkinElmer, Inc. and OPKO Health, Inc. (OPK - Free Report) . While OPKO Health carries a Zacks Rank #2 (Buy), the other two sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.
PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.
OPKO Health reported second-quarter 2020 EPS of 5 cents against the Zacks Consensus Estimate of a loss of 7 cents per share. Revenues of $301.2 million surpassed the consensus estimate by 28.4%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.
This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.
Image: Bigstock
Veeva Systems (VEEV) Q2 Earnings and Revenues Beat Estimates
Veeva Systems, Inc. (VEEV - Free Report) reported second-quarter fiscal 2021 adjusted earnings per share (EPS) of 72 cents, beating the Zacks Consensus Estimate by 12.5%. The metric surged 30.9% on a year-over-year basis.
The company’s revenues totaled $353.7 million, outpacing the Zacks Consensus Estimate by 4.1%. On a year-over-year basis, the top line improved 32.5%.
Segmental Details
Subscription Service
Fiscal second-quarter subscription service revenues summed $283.5 million, up 30% year over year.
Professional Service and Others
Professional Service revenues rose almost 41.5% to $70.2 million from the year-ago figure.
Per management, outperformance by Veeva Commercial Cloud and Veeva Vault drove revenues across all segments.
Margin Details
In the reported quarter, gross profit increased 30.4% year over year to $256.5 million. Gross margin was 72.5%, which contracted 117 basis points (bps).
Operating profit totaled $149.3 million, up 24.7% year over year. In the quarter under review, operating margin fell 264 bps to 42.2%.
Veeva Systems Inc. Price, Consensus and EPS Surprise
Veeva Systems Inc. price-consensus-eps-surprise-chart | Veeva Systems Inc. Quote
Cash Position
The company exited the fiscal second quarter with cash and cash equivalent of $795.8 million compared with $720.8 million at the end of the fiscal first quarter. Cumulative net cash provided by operating activities came in at $387.5 million, up from $336.8 million at the end of the year-ago period.
Guidance
For the third quarter of fiscal 2021, Veeva Systems expects revenues between $360 million and $362 million. The Zacks Consensus Estimate for the same stands at $347.3 million.
Adjusted EPS is projected between 66 and 68 cents. The Zacks Consensus Estimate for the metric is pegged at 63 cents.
Adjusted operating income is estimated between $138 million and $140 million.
For fiscal 2021, revenues are expected within $1.41-$1.42 billion, compared with the previously-issued range of $1.38-$1.39 billion. The Zacks Consensus Estimate for the same is pinned at $1.39 billion.
Adjusted EPS is expected in the range of $2.64-$2.67 versus the previous range of $2.50-$2.55. The Zacks Consensus Estimate for the same stands at $2.55.
Adjusted operating income is expected between $540 million and $545 million.
Wrapping Up
Veeva Systems ended the second quarter of fiscal 2021 on a strong note. The core Subscription business segment performed impressively. A raised guidance for the full year buoys optimism as well. Apart from these, the company continues to benefit from its flagship Vault platform. In fact, Veeva Vault’s customer count has increased manifold in recent times. Markedly, Veeva Systems’ unique solutions include Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData. The company’s new CRM Sunrise UI and Nitro look promising as well.
In Commercial Cloud, Veeva Systems secured a number of deals. The company is confident about growth in new markets, with products like EDC, Safety, Nitro and Vault. The addition of Veeva CRM Engage Meeting, new remote monitoring capabilities in Veeva SiteVault Free and Telehealth Metrics to the Crossix Data Platform raises optimism.
On the flip side, contraction of both margins in the quarter is a concern. Also, intense competition and a saturating life sciences market are concerning. Volatility in the foreign currency exchange rate is an added woe.
Zacks Rank and Key Picks
Veeva Systems currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. (TMO - Free Report) , PerkinElmer, Inc. and OPKO Health, Inc. (OPK - Free Report) . While OPKO Health carries a Zacks Rank #2 (Buy), the other two sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.
PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.
OPKO Health reported second-quarter 2020 EPS of 5 cents against the Zacks Consensus Estimate of a loss of 7 cents per share. Revenues of $301.2 million surpassed the consensus estimate by 28.4%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.
This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.
See their latest picks free >>