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Can Veeva Systems (VEEV) Pull an Earnings Surprise in Q2?
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Veeva Systems Inc. (VEEV - Free Report) is set to report second-quarter fiscal 2017 results on Aug 30. Last quarter, the company reported earnings of 11 cents, which beat the Zacks Consensus Estimate by four cents. Notably, the company posted an average positive surprise of 27.14% over the last four quarters.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Veeva expects total revenues in the range of $125.5–$127 million for the second-quarter fiscal 2017. Meanwhile, non-GAAP operating income is expected between $30 million and $30.5 million. Non-GAAP earnings are likely to be 13 cents per share.
For the second quarter, management anticipates calculated billings of roughly $110 million which represents about 14% growth on a year-over-year basis.
Extended use of multi-channel Customer Relationship Management (CRM) application by customers continues to be a key growth catalyst for the company. We believe product suites like Veeva Vault will help win customers for Veeva.
The newly launched Veeva Vault QMS expands the product’s presence into 10 new markets. The addition of QMS doubles the company’s growth opportunities in the quality management market.
Additionally Veeva’s regulatory application suite – Veeva Vault Registrations and Veeva Vault SubmissionsArchive continues to gain solid traction, which is a key catalyst.
Earnings Whispers
Our proven model does not conclusively show that Veeva is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Veeva has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 7 cents.
Zacks Rank: Veeva carries a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat:
IDEXX Laboratories (IDXX - Free Report) , with an Earnings ESP of +5.3% and a Zacks Rank #1.
Lannett Company , with an Earnings ESP of +1.43% and a Zacks Rank #1.
Quidel Corp. (QDEL - Free Report) , with an Earnings ESP of +133.33% and a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Can Veeva Systems (VEEV) Pull an Earnings Surprise in Q2?
Veeva Systems Inc. (VEEV - Free Report) is set to report second-quarter fiscal 2017 results on Aug 30. Last quarter, the company reported earnings of 11 cents, which beat the Zacks Consensus Estimate by four cents. Notably, the company posted an average positive surprise of 27.14% over the last four quarters.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Veeva expects total revenues in the range of $125.5–$127 million for the second-quarter fiscal 2017. Meanwhile, non-GAAP operating income is expected between $30 million and $30.5 million. Non-GAAP earnings are likely to be 13 cents per share.
For the second quarter, management anticipates calculated billings of roughly $110 million which represents about 14% growth on a year-over-year basis.
VEEVA SYSTEMS-A Price and EPS Surprise
VEEVA SYSTEMS-A Price and EPS Surprise | VEEVA SYSTEMS-A Quote
Extended use of multi-channel Customer Relationship Management (CRM) application by customers continues to be a key growth catalyst for the company. We believe product suites like Veeva Vault will help win customers for Veeva.
The newly launched Veeva Vault QMS expands the product’s presence into 10 new markets. The addition of QMS doubles the company’s growth opportunities in the quality management market.
Additionally Veeva’s regulatory application suite – Veeva Vault Registrations and Veeva Vault SubmissionsArchive continues to gain solid traction, which is a key catalyst.
Earnings Whispers
Our proven model does not conclusively show that Veeva is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Veeva has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 7 cents.
Zacks Rank: Veeva carries a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat:
IDEXX Laboratories (IDXX - Free Report) , with an Earnings ESP of +5.3% and a Zacks Rank #1.
Lannett Company , with an Earnings ESP of +1.43% and a Zacks Rank #1.
Quidel Corp. (QDEL - Free Report) , with an Earnings ESP of +133.33% and a Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>