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Thursday, December 1, 2022

Veeva stock drops in the extended session after weaker-than-forecast quarterly guidance

 Shares of Veeva Systems Inc. dropped nearly 6% in the extended session Thursday after the cloud-computing company reported quarterly earnings above expectations but guided for a weaker-than-expected current quarter. Veeva earned $108.5 million, or 67 cents a share, in the quarter, compared with $105.9 million, or 65 cents a share, in the year-ago period. Adjusted for one-time items, the company earned $1.13 a share. Veeva's revenue rose 16% to $552.4 million, including subscription services revenue of $441.6 million, also 16% higher year-on-year. Analysts polled by FactSet expected Veeva to earn an adjusted $1.07 a share on revenue of $546 million. The results were above the company's guidance and Veeva is "well positioned for durable and profitable growth," Chief Financial Officer Brent Bowman said in a statement. Veeva, which focuses on the life-sciences industry, guided for fiscal fourth-quarter revenue between $551 million and $553 million, and adjusted EPS around $1.05. For fiscal 2023, the company called for revenue between $2.143 billion and $2.145 billion, and adjusted EPS of about $4.19. FactSet consensus for fourth quarter calls for adjusted EPS of $1.07 on revenue of $557 million, while consensus for the fiscal year calls for adjusted EPS of $4.15 on revenue of $2.142 billion. Veeva ended the regular trading day up 0.6%.

https://www.morningstar.com/news/marketwatch/202212011038/veeva-stock-drops-in-the-extended-session-after-weaker-than-forecast-quarterly-guidance

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