Veeva Systems Inc.
VEEV
is scheduled to release fourth-quarter fiscal 2021 results on Mar 2, after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 14.7%. Further, its beat estimates in each of the trailing four quarters, the average surprise being 11.2%.
Q4 Estimates
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings is pegged at 68 cents, suggesting an improvement of 25.9% from the year-ago quarter. The same for revenues stands at $379.9 million, indicating growth of 21.9% from the prior-year reported figure.
Factors to Note
Veeva Systems unique product portfolio, comprising Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData, might have driven the fiscal fourth-quarter performance.
The company’s first cloud-based content management system, built specifically for life sciences — Veeva Vault — is likely to have added new Vault customers in the quarter to be reported.
Veeva Systems Inc. Price and EPS Surprise
Veeva Systems Inc. price-eps-surprise
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Veeva Systems Inc. Quote
Strength across each Vault application area, including continued momentum in more established products and early success for new products, may have benefited the to-be-reported quarter’s performance.
Further, Veeva Commercial Cloud and Veeva Vault might have contributed to Professional Service and Other segment’s revenues in the to-be-reported quarter.
Strong performance across Veeva Systems’ segments — Subscription Service and Professional Service and Others — is likely to get reflected in the to-be-reported quarter’s revenues. Notably, the company expects revenues between $378 million and $380 million in fourth-quarter fiscal 2021.
Moreover, in October 2020, Veeva Systems announced the development of the company’s Veeva Clinical Network solution-based first two applications viz. Veeva Site Connect and Veeva eConsent. Notably, the company claims Veeva Clinical Network to be the industry’s only solution that connects sponsors, clinical research sites and patients for paperless, patient-centric trials.
In September 2020, the company announced that German biopharmaceutical company Biotest deployed Veeva Vault eTMF to attain greater visibility across its European trials. In the same month, it announced that the leading independent medical marketing company Medis shifted to multichannel Veeva Customer Relationship Management (CRM) in 15 countries across Central and Eastern Europe to implement its commercial strategy and drive more efficient interactions with healthcare professionals (HCPs).
Around the same time, leading, science-led biopharmaceutical company, AstraZeneca, selected Veeva Vault QMS and Veeva Vault QualityDocs to combine quality management with content on a single cloud platform.
In November 2020, Veeva Systems announced that its Veeva Vault PromoMats is being adopted by Bristol Myers Squibb, a leading biopharmaceutical company. This will help the latter deliver fast and compliant content throughout all digital channels to its customers.
In December, the company announced that the contract research organization (CRO) GenesisCare Clinical CRO implemented Veeva Vault (electronic trial master file) (eTMF), Veeva Vault clinical trial management system (CTMS) and Veeva Vault Payments to drive efficiency in trial processes globally.
These positive developments are likely to get reflected in the fiscal fourth-quarter results.
However, escalating expenses on the operational side might have weighed on Veeva Systems’ margins.
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 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Zacks Rank
: It carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Intersect ENT, Inc.
XENT
has an Earnings ESP of +5.23% and a Zacks Rank of 3. You can see
the complete list of today’s Zacks #1 Rank stocks here.
Surface Oncology, Inc.
SURF
has an Earnings ESP of +115.83% and a Zacks Rank of 2.
HEXO Corp.
HEXO
has an Earnings ESP of +10.71% and a Zacks Rank of 3.
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