Why Veeva Systems Shares Are Diving Friday
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 31 2024
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Source: Benzinga
- Financial Performance: Veeva Systems Inc. reported strong first-quarter FY25 results with a 24% increase in revenue to $650.3 million, surpassing expectations.
- Operating Income and EPS: Adjusted operating income grew by 66% year-over-year to $260.9 million, and adjusted EPS was $1.50, beating the consensus estimate.
- Cash Position: As of April-end, Veeva Systems had $1.20 billion in cash and equivalents along with short-term investments of $3.6 billion.
- Outlook: The company expects slightly lower revenue for the second quarter compared to estimates but reiterated its adjusted EPS and operating income guidance for FY25.
- Stock Performance: VEEV shares were down by 9.21% at $176.02 following the earnings report, impacting ETFs like First Trust Nasdaq Lux Digital Health Solutions ETF EKG and Sterling Capital Focus Equity ETF LCG.
Analyst Views on VEEV
Wall Street analysts forecast VEEV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VEEV is 317.10 USD with a low forecast of 222.00 USD and a high forecast of 380.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
16 Buy
6 Hold
1 Sell
Moderate Buy
Current: 219.730
Low
222.00
Averages
317.10
High
380.00
Current: 219.730
Low
222.00
Averages
317.10
High
380.00
About VEEV
Veeva Systems Inc. is a provider of cloud solutions for the global life sciences industry. It offers span cloud software, data, and business consulting and is designed to meet the needs of its customers and the strategic business functions from research and development (R&D) through commercialization. Its four product categories include Veeva Development Cloud, Veeva Quality Cloud, Veeva Commercial Cloud, and Veeva Data Cloud. Veeva Development Cloud includes application suites for the clinical, regulatory, and safety functions of life sciences companies, all built on its Veeva Vault platform. Veeva Quality Cloud unifies applications, processes, and partners across content management, training, quality management, assurance, and control lab solutions on the Veeva Vault platform. Veeva Commercial Cloud is a product category comprised of software and analytics solutions. Veeva Data Cloud is a data platform comprised of connected reference data, deep data, and transaction data.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
