Shares of Veeva Systems (VEEV 9.10%) are posting big gains in Thursday’s trading despite broader sell-offs for the tech sector. The life-sciences software company’s stock was up 10.2% as of 12:30 p.m. ET today.
Veeva Systems reported its fourth-quarter results after the market closed yesterday and posted better-than-expected sales and earnings results. The company’s outlook also topped Wall Street’s expectations.
Veeva stock rises on a strong Q4
Adjusted earnings per share (EPS) of $1.74 on sales of $720.89 million topped the average analyst estimate’s call for EPS of $1.58 on sales of $699.39 million.
Revenue rose 14.3% year over year in the fourth quarter, and adjusted EPS was up 26% compared to last year’s quarter. It was a strong period for the business, wit subscription services revenue climbing 17% year over year to $608.6 million, helping to power substantial sales and earnings beats.
Earnings guidance came in significantly ahead of Wall Street’s targets
For the first quarter, Veeva guided for sales between $726 million and $729 million, beating the average Wall Street forecast for sales of $725.82 million. Even better, adjusted EPS is projected to come in between $1.74 and $1.75, beating the average analyst forecast for $1.62.
And while the company’s full-year target for revenue between $3.04 billion and $3.055 billion fell slightly short of the consensus forecast of $3.06 billion, guidance for adjusted EPS of roughly $7.32 came in far better than Wall Street’s target for $6.97. Momentum looks strong as growth for subscription services is powering expansion and supporting strong margins.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Veeva Systems. The Motley Fool has a disclosure policy.
