Healthcare software provider Veeva Systems (NASDAQ:VEEV) will be reporting earnings tomorrow after the bell. Here’s what investors should know.
Veeva Systems beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $676.2 million, up 14.6% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Veeva Systems a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Veeva Systems’s revenue to grow 11% year on year to $684.3 million, in line with the 11.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.58 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Veeva Systems has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.3% on average.
Looking at Veeva Systems’s peers in the vertical software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Doximity delivered year-on-year revenue growth of 20.4%, beating analysts’ expectations by 7.6%, and Upstart reported revenues up 20.5%, topping estimates by 7.9%. Doximity traded up 34.1% following the results while Upstart was also up 45.9%.
Read our full analysis of Doximity’s results here and Upstart’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 16.8% on average over the last month. Veeva Systems is up 9.1% during the same time and is heading into earnings with an average analyst price target of $248.57 (compared to the current share price of $232).
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