Why Veeva Systems Stock Is Plunging Today

Why Veeva Systems Stock Is Plunging Today

Veeva Systems Inc VEEV shares are trading lower Thursday after the company reported financial results and issued topline guidance below analyst estimates.

Q2 Results: Veeva Systems reported fiscal second-quarter revenue of $534.2 million, which beat average analyst estimates of $530.61 million, according to Benzinga Pro. Veeva's topline results jumped 17% year-over-year. 

The company reported second-quarter earnings of $1.03 per share, which was up from 94 cents per share year-over-year. 

"We are very confident in our competitive position and we are performing well financially as we track ahead of our 2025 targets," said Brent Bowman, CFO of Veeva Systems.

Outlook: Veeva Systems expects third-quarter revenue to be between $545 million and $547 million versus the estimate of $558.28 million. The company expects third-quarter earnings to be between $1.07 and $1.08 per share.

Veeva Systems sees full-year revenue between $2.14 billion and $2.145 billion versus the estimate of $2.17 billion. The company expects full-year earnings of approximately $4.17 per share.

See Also: Why Applied Materials Shares Are Trading Lower

Analyst Assessment: Several analysts adjusted price targets on the stock following the company's quarterly results.

  • Piper Sandler analyst Brent Bracelin maintained Veeva with an Overweight and lowered the price target from $275 to $245.
  • Barclays analyst Saket Kalia maintained Veeva with an Equal-Weight and lowered the price target from $222 to $205.
  • UBS analyst Karl Keirstead maintained Veeva with a Neutral and lowered the price target from $220 to $185.
  • Baird analyst Joe Vruwink maintained Veeva with an Outperform and lowered the price target from $267 to $250.
  • Raymond James analyst Brian Peterson maintained Veeva with an Outperform and raised the price target from $205 to $225.

VEEV Price Action: Veeva Systems has a 52-week high of $257.68 and a 52-week low of $152.04.

The stock was down 16.1% at $167.17 at time of publication.

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