Veeva Systems (VEEV) shares rise after topping guidance estimates

Veeva Systems (NYSE: VEEV) shares surged premarket Thursday after topping first-quarter estimates, while its guidance also came in above analyst consensus expectations.

Shares of the cloud-computing firm are trading 8% above the previous session's close.

Aftermarket on Wednesday, Veeva Systems reported Q1 EPS of $0.91, $0.12 better than the analyst estimate of $0.79, while revenue for the quarter came in at $526.3 million versus the consensus estimate of $515.86 million.

Looking ahead, VEEV sees its Q2 2024 EPS between $1.12 and $1.13, versus the consensus of $1.07, with revenue from $580 million to $582 million, versus the consensus of $580.31 million.

For full-year FY2024, EPS is expected to be $4.59, versus the consensus of $4.32, with revenue of $2.36 billion to $2.37 billion, versus the consensus of $2.36 billion.

Reacting to the report, TD Cowen analyst Charles Rhyee maintained a Market Perform rating and $189 price target on the stock, stating that solid fundamentals drove the beat as the company continues to innovate.

Wells Fargo's Stan Berenshteyn maintained an Equal Weight rating and $180 price target on the stock. He said VEEV's low emerging biotech exposure and GPT-like product debut should assist the narrative.

"We expect shares to react positively on the F1Q24 beat & raise. Macro concerns should decrease on disclosed emerging biotech exposure (~4% of revenue), while GPT-like product announcement could help the narrative, though unlikely to be material N-T," Berenshteyn explained.

At Morgan Stanley, analyst Craig Hettenbach also maintained an Equal Weight rating on the stock, as well as a $181 price target.

"Against the backdrop of negative sentiment in the stock, the company delivered upside on all metrics in Q1. This should help VEEV reverse some of the YTD underperformance, although we see SMB customer demand as a key swing factor for a more durable rally," he wrote.

By Sam Boughedda

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