Market Overview

Earnings Preview: Veeva Systems

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Veeva Systems (NYSE:VEEV) releases its next round of earnings this Tuesday, December 01. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Veeva Systems earnings will be near $0.68 per share on sales of $361.82 million, according to analysts. Veeva Systems EPS in the same period a year ago totaled $0.6. Revenue was $280.92 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be up 13.33%. Sales would be have grown 28.8% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.64 0.58 0.52 0.54
EPS Actual 0.72 0.66 0.54 0.60
Revenue Estimate 340.12 M 319.99 M 298.30 M 274.78 M
Revenue Actual 353.68 M 337.11 M 311.51 M 280.92 M

Stock Performance

Shares of Veeva Systems were trading at $276.88 as of November 27. Over the last 52-week period, shares are up 88.9%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Veeva Systems is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings