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Wednesday, August 31, 2022

Veeva Plummets As A Key Issue Shadows Its Quarterly Beat

 Medical software maker Veeva Systems (VEEV) issued light sales guidance for the current quarter and full year late Wednesday, leading VEEV stock to plummet.

The outlook disappointment comes on the heels on a July-quarter beat.

"We are very confident in our competitive position and we are performing well financially as we track ahead of our 2025 targets," Chief Financial Officer Brent Bowman said in a written statement.

But in after-hours trading on the stock market today, VEEV stock tumbled 8.2% near 183.

VEEV Stock Skids Despite Quarterly Growth

Adjusted Veeva earnings climbed almost 10% to $1.03 per share during the quarter ended July 31. That beat expectations by two pennies, according to FactSet. Revenue also jumped more than 17% to $534.2 million and beat VEEV stock analysts' forecast for $531 million.

The sales increase lined up with Veeva's subscription services. Revenue in that division advanced 17% year over year to $366.4 million.

For the current quarter, Veeva expects to earn $1.07-$1.08 per share. The earnings guidance was in line with calls for $1.08. But sales guidance was lackluster. Veeva called for $545 million to $547 million in sales. Even the high end of the outlook missed forecasts for $558 million.

Veeva also guided to adjusted income of $4.17 per share on $2.14 billion to $2.145 billion in full-year sales. While the earnings outlook was slightly ahead of expectations for $4.15 a share, Veeva's revenue view was well below VEEV stock analysts' projections for $2.17 billion in sales.

https://www.investors.com/news/technology/veev-stock-veeva-earnings-q2-2023/

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