Earnings Preview for Veeva Systems

On Tuesday, March 02, Veeva Systems VEEV will release its latest earnings report. Check out Benzinga's preview to understand the implications.

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

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Veeva Systems reporting earnings of $0.68 per share on sales of $380.23 million. In the same quarter last year, Veeva Systems announced EPS of $0.54 on revenue of $311.51 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 25.93%. Revenue would be up 22.06% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Veeva Systems were trading at $281.04 as of February 26. Over the last 52-week period, shares are up 104.73%. Given that these returns are generally positive, long-term shareholders are probably 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.