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) Beats Q1 Earnings Estimates, Raises View
Read MoreHide Full Article
Veeva Systems Inc. (VEEV - Free Report) reported first-quarter fiscal 2019 adjusted earnings of 33 cents per share. The bottom line beat the Zacks Consensus Estimate by 3 cents and improved 43.5% from the year-ago quarter’s figure.
Total revenues were $195.5 million in the first quarter, up 22.4% year over year. Moreover, the top line surpassed the Zacks Consensus Estimate of $189.2 million. Veeva System’s strong growth in subscription revenues segment drove the metric.
Veeva Systems outperformed its industry on a year-to-date basis. The company’s shares have gained 9.5% comparing favorably with the industry’s rise of 5.9%. The current level is also higher than the S&P 500 index’s return of just 2%.
The stock has a Zacks Rank #3 (Hold).
Segmental Details
First-quarter subscription service revenues were $156 million, up 20.8% year over year. The upside was backed by stronger-than-expected bookings in the quarter under review.
Subscription gross margin was 80.8%, expanding roughly 100 basis points (bps) year over year. Per the company, momentum in product lines, especially the Veeva Vault, continue to drive growth.
Professional service revenues rose almost 29.1% to $34 million. In the quarter under review, services gross margin was 23.5%, down from 220 bps in the prior-year quarter.
Veeva Systems Inc. Price, Consensus and EPS Surprise
Gross profit in the reported quarter increased 22.1% year over year to $135.4 million. Gross margin at Veeva Systems contracted 20 bps to 69.2% in the reported quarter.
Operating income was $44 million in the reported quarter, up 13.1% from the year-ago quarter’s level. However, operating margin contracted 180 bps to 22.5% from the year-ago quarter’s figure. Rising operating expenses has kept the operating margin under pressure in the quarter. In this regard, operating expenses increased 26.9% in the reported quarter to $91.4 million.
Research and development expenses increased 31.4% to $37.2 million. Sales and marketing expenses rose 14.1% to $34.4 million. General and administrative expenses increased 46.2% to $19.9 million.
Guidance
The company provided financial guidance for the second quarter of fiscal 2019. Total revenues are expected in the range of $203-$204 million. The Zacks Consensus Estimate is pegged at $198.9 million, which is below the guidance. Adjusted operating income is expected between $64 million and $65 million. Adjusted earnings per share are expected in the band of 33-34 cents. The Zacks Consensus Estimate is pegged at 32 cents, which is below the guidance.
For the fiscal, total revenues are anticipated in the band of $826-$830 million, up from the previous range of $815-$820 million. The Zacks Consensus Estimate is pegged at $819.2 million, which lies within the guidance. Adjusted earnings are projected between $1.36 and $1.38, up from the previous range of $1.30-$1.33. The Zacks Consensus Estimate for the metric is pegged at $1.32, which lies within the guidance.
In Conclusion
Veeva Systems exited the first quarter of fiscal 2019 on a solid note, beating the Zacks Consensus Estimate on both the counts. Solid performance in Subscription revenues has been a key catalyst. Further, in a bid to replace the simple custom-made data warehouses with a unique industry-specific data model, Veeva Systems recently introduced Veeva Nitro — a new model of commercial data warehouse for Life Sciences. We are encouraged by Veeva Systems’ consistent efforts in product innovation and launches through R&D. Growing global demand for cloud-based vault applications also boost opportunities.
On the flip side, high expenses on the operational side are causing a drag on the company’s margins, partially dampening its revenues. Furthermore, intense competition and a saturating life sciences market are key concerns. Volatility in foreign currency exchange rate is a headwind.
Q1 Earnings of MedTech Majors at a Glance
A few better-ranked stocks in the broader medical space which reported solid earnings this season are Boston Scientific Corporation (BSX - Free Report) , Varian Medical Systems, Inc and Intuitive Surgical, Inc (ISRG - Free Report) .
Intuitive Surgical reported adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate by 22.6%. Revenues totaled $848 million, which beat the Zacks Consensus Estimate by 10.6%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Varian Medical reported second-quarter fiscal 2018 adjusted earnings of $1.15 per share, which beat the Zacks Consensus Estimate of $1.06. Adjusted earnings improved 27.8% on a year-over-year basis. The stock has a Zacks Rank #2 (Buy).
Boston Scientific posted adjusted earnings per share of 33 cents in the first quarter of 2018, up 13.8% from the year-ago quarter’s tally. Earnings also surpassed the Zacks Consensus Estimate of 31 cents. The stock has a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Veeva Systems (VEEV) Beats Q1 Earnings Estimates, Raises View
Veeva Systems Inc. (VEEV - Free Report) reported first-quarter fiscal 2019 adjusted earnings of 33 cents per share. The bottom line beat the Zacks Consensus Estimate by 3 cents and improved 43.5% from the year-ago quarter’s figure.
Total revenues were $195.5 million in the first quarter, up 22.4% year over year. Moreover, the top line surpassed the Zacks Consensus Estimate of $189.2 million. Veeva System’s strong growth in subscription revenues segment drove the metric.
Veeva Systems outperformed its industry on a year-to-date basis. The company’s shares have gained 9.5% comparing favorably with the industry’s rise of 5.9%. The current level is also higher than the S&P 500 index’s return of just 2%.
The stock has a Zacks Rank #3 (Hold).
Segmental Details
First-quarter subscription service revenues were $156 million, up 20.8% year over year. The upside was backed by stronger-than-expected bookings in the quarter under review.
Subscription gross margin was 80.8%, expanding roughly 100 basis points (bps) year over year. Per the company, momentum in product lines, especially the Veeva Vault, continue to drive growth.
Professional service revenues rose almost 29.1% to $34 million. In the quarter under review, services gross margin was 23.5%, down from 220 bps in the prior-year quarter.
Veeva Systems Inc. Price, Consensus and EPS Surprise
Veeva Systems Inc. Price, Consensus and EPS Surprise | Veeva Systems Inc. Quote
Margin Details
Gross profit in the reported quarter increased 22.1% year over year to $135.4 million. Gross margin at Veeva Systems contracted 20 bps to 69.2% in the reported quarter.
Operating income was $44 million in the reported quarter, up 13.1% from the year-ago quarter’s level. However, operating margin contracted 180 bps to 22.5% from the year-ago quarter’s figure. Rising operating expenses has kept the operating margin under pressure in the quarter. In this regard, operating expenses increased 26.9% in the reported quarter to $91.4 million.
Research and development expenses increased 31.4% to $37.2 million. Sales and marketing expenses rose 14.1% to $34.4 million. General and administrative expenses increased 46.2% to $19.9 million.
Guidance
The company provided financial guidance for the second quarter of fiscal 2019. Total revenues are expected in the range of $203-$204 million. The Zacks Consensus Estimate is pegged at $198.9 million, which is below the guidance. Adjusted operating income is expected between $64 million and $65 million. Adjusted earnings per share are expected in the band of 33-34 cents. The Zacks Consensus Estimate is pegged at 32 cents, which is below the guidance.
For the fiscal, total revenues are anticipated in the band of $826-$830 million, up from the previous range of $815-$820 million. The Zacks Consensus Estimate is pegged at $819.2 million, which lies within the guidance. Adjusted earnings are projected between $1.36 and $1.38, up from the previous range of $1.30-$1.33. The Zacks Consensus Estimate for the metric is pegged at $1.32, which lies within the guidance.
In Conclusion
Veeva Systems exited the first quarter of fiscal 2019 on a solid note, beating the Zacks Consensus Estimate on both the counts. Solid performance in Subscription revenues has been a key catalyst. Further, in a bid to replace the simple custom-made data warehouses with a unique industry-specific data model, Veeva Systems recently introduced Veeva Nitro — a new model of commercial data warehouse for Life Sciences. We are encouraged by Veeva Systems’ consistent efforts in product innovation and launches through R&D. Growing global demand for cloud-based vault applications also boost opportunities.
On the flip side, high expenses on the operational side are causing a drag on the company’s margins, partially dampening its revenues. Furthermore, intense competition and a saturating life sciences market are key concerns. Volatility in foreign currency exchange rate is a headwind.
Q1 Earnings of MedTech Majors at a Glance
A few better-ranked stocks in the broader medical space which reported solid earnings this season are Boston Scientific Corporation (BSX - Free Report) , Varian Medical Systems, Inc and Intuitive Surgical, Inc (ISRG - Free Report) .
Intuitive Surgical reported adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate by 22.6%. Revenues totaled $848 million, which beat the Zacks Consensus Estimate by 10.6%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Varian Medical reported second-quarter fiscal 2018 adjusted earnings of $1.15 per share, which beat the Zacks Consensus Estimate of $1.06. Adjusted earnings improved 27.8% on a year-over-year basis. The stock has a Zacks Rank #2 (Buy).
Boston Scientific posted adjusted earnings per share of 33 cents in the first quarter of 2018, up 13.8% from the year-ago quarter’s tally. Earnings also surpassed the Zacks Consensus Estimate of 31 cents. The stock has a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>