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Veeva Systems (VEEV) to Post Q4 Earnings: What's in Store?

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Veeva Systems Inc. (VEEV - Free Report) is scheduled to release fourth-quarter fiscal 2020 results on Mar 3, after the closing bell.

In the last reported quarter, the company delivered a positive earnings surprise of 11.1%. Further, it has a trailing four-quarter positive earnings surprise of 11.7%, on average.

Q4 Estimates

The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings is pegged at 52 cents, suggesting an improvement of 15.6% from the year-ago quarter. The same for revenues is pegged at $298.1 million, indicating growth of 28.3% from the year-ago reported figure.

Veeva Systems Inc. Price and EPS Surprise

 

Veeva Systems Inc. Price and EPS Surprise

Veeva Systems Inc. price-eps-surprise | Veeva Systems Inc. Quote

Factors to Influence Q4

Veeva Systems unique product portfolio, comprising Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData is likely to have driven the fiscal fourth quarter performance.

Veeva Systems’ first cloud-based content management system, built specifically for life sciences — Veeva Vault — is likely to have added new Vault customers in the fiscal fourth quarter.

Additionally, Veeva Andi — the new AI application released by the company in first-quarter fiscal 2020, which delivers insights and next best action suggestions right in Veeva CRM — is likely to have contributed to the fiscal fourth-quarter results.

Management stated that, in fiscal 2020, Veeva Systems aims to release major capabilities within Vault CDMS, which are expected to be real game changers for the life sciences industry.

Strength across each Vault application area, including continued momentum in more established products and early success for new products is likely to have contributed to the fiscal fourth-quarter performance.

Veeva Systems’ subscription revenues are likely to have benefited from increase in bookings in the fiscal fourth quarter. In fact, the Zacks Consensus Estimate for the company’s subscription revenues is pegged at $246 million, indicating an improvement of 29.1% from the year-ago quarter.

Further, Veeva Commercial Cloud and Veeva Vault are likely to have driven Professional Service and Other segment’s revenues in the to-be-reported quarter.

Possible strength in bookings and outperformance in services revenues are likely to get reflected in calculated billings in the to-be-reported quarter. In fact, the company anticipates calculated billings to range between $500 million and $505 million in the fiscal fourth quarter.

However, intense competition across most of the product lines is likely to have weighed Veeva Systems’ overall performance.

What Our Quantitative Model Suggests

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.

Earnings ESP: Veeva Systems has an Earnings ESP of +2.53%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: Veeva Systems carries a Zacks Rank #4 (Sell).

Stocks Worth a Look

Here are a few medical stocks worth considering with the right combination of elements to beat on earnings this reporting cycle.

Baxter International Inc. (BAX - Free Report) has a Zacks Rank #3 and an Earnings ESP of +0.19%. You can see the complete list of today’s Zacks #1 Rank stocks here.

HealthEquity, Inc. (HQY - Free Report) has a Zacks Rank of #3 and an Earnings ESP of +19.04%.

Perrigo Company plc (PRGO - Free Report) is Zacks #2 Ranked and has an Earnings ESP of +1.98%.

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