Veeva (VEEV) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Viewpoint - Veeva Systems (VEEV) is expected to report strong quarterly earnings with a projected EPS of $1.43, reflecting a 57.1% year-over-year increase, and revenues of $641.73 million, indicating a 21.9% increase compared to the previous year [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised downward by 0.1%, indicating a slight adjustment in analysts' forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts predict 'Revenues- Subscription services' will reach $528.26 million, a 27.4% increase from the prior-year quarter [5]. - The estimate for 'Revenues- Professional services and other' is $113.08 million, reflecting a 1.2% increase from the previous year [5]. - 'Revenues- Professional services and other- Veeva R&D Solutions' is expected to be $68.33 million, showing a 2.1% year-over-year change [6]. - 'Revenues- Subscription services- Veeva R&D Solutions' is projected at $267.79 million, indicating a significant 52.8% increase from the year-ago quarter [6]. - 'Revenues- Subscription services- Veeva Commercial Solutions' is anticipated to be $259.99 million, reflecting an 8.6% increase [7]. - The consensus for 'Revenues- Professional services and other- Veeva Commercial Solutions' is $45.32 million, indicating a 1% year-over-year change [7]. Gross Margin Estimates - The average prediction for 'Non-GAAP Gross Margin- Professional Services and other' is 26.3%, up from 23% in the previous year [8]. - 'Non-GAAP Gross Margin- Subscription services' is expected to be 85.2%, compared to 84.3% reported in the same quarter last year [8]. Stock Performance - Over the past month, Veeva shares have returned +2.8%, while the Zacks S&P 500 composite has changed by +4% [8]. - Veeva holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the near term [8].