© Reuters. Veeva Systems (VEEV) shares rose after beating guidance estimates
Shares of Veeva Systems (NYSE: ) rose in the primary market Thursday after beating first-quarter estimates, while its guidance also came in above analyst expectations.
Shares of the cloud computing company are trading 9% higher than the previous session’s close.
Aftermarket on Wednesday, Veeva Systems Q1 EPS of $0.91, $0.12 better than analyst estimates of $0.79, while revenue for the quarter came in at $526.3 million versus a consolidated estimate of $515.86 million.
Looking ahead, VEEV sees its earnings in the second quarter of 2024 between $1.12 and $1.13, against a consensus of $1.07, with revenues of $580 million to $582 million, against a consensus of $580.31 million.
For the full year 2024 fiscal year, the share price is expected to be $4.59, versus consensus of $4.32, on revenue of $2.36 billion to $2.37 billion, versus consensus of $2.36 billion.
In response to the report, TD Cowen analysts maintained a Market Performance rating and a price target of $189 per share, noting that strong fundamentals have driven the pace as the company continues to innovate.
Wells Fargo analysts maintain an equal weight rating and a price target of $180 per share. They said the low exposure to the emerging biotech from VEEV and the advent of the GPT-like product should help the narrative.
“We expect stocks to react positively to the F1Q24 win and lift. Overall concerns should come down on disclosure of exposure to the emerging biotech (about 4% of revenue), while the GPT-like product announcement could help the narrative, although it It is unlikely that NT is physical,” they explain.
At Morgan Stanley, analysts also maintain an equal rating on the stock, as well as a $181 price target.
“On the back of negative equity sentiment, the company posted a rally across all metrics in the first quarter. This should help VEEV reverse some of the year-to-date underperformance, although we see SME customer demand as a key swing factor to achieving A more permanent hike,” they wrote.