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Veeva (VEEV) Scales a 52-Week High on Strong Q1 Results

Shares of Veeva Systems Inc VEEV scaled a new 52-week high of $33.15 on May 27, eventually closing a tad bit lower at $32.18. This translates into an impressive one-year return of roughly 18.7%, significantly higher than the S&P 500 return of 3.35%.

Last Friday’s rally reflects Veeva’s impressive first-quarter fiscal 2017 results which beat the Zacks Consensus Estimate on both the fronts. The company also raised its revenue and earnings projections for full-year 2017.

This Zacks Rank #3 (Hold) stock has a market cap of around $4.32 billion while average volume of shares traded over the last three months is roughly 1,183.6K.

Q1 Results

Veeva reported adjusted earnings of 11 cents per share (including stock-based compensation and deferred compensation associated with the Zinc Ahead acquisition), which beat the Zacks Consensus Estimate by four cents (57.1%).

The upside was driven by revenue growth of 33.2%, which totaled almost $120 million, well ahead of the Zacks Consensus Estimate of $115 million.

Veeva noted that subscription revenues continued to grow faster than services, thereby increasing the recurring part of the revenue mix.

Veeva announced the launch of Veeva Vault QMS for the quality management market. The new application expands Vault’s presence into 10 markets. The addition of QMS doubles the company’s growth opportunities in the quality management market. Vault QMS will be available from late June.

Based on the impressive results, Veeva raised its guidance for fiscal 2017. Total revenues are now expected in the band of $516--$520 million, up from $508–$513 million. Veeva now believes that it will be able to achieve the projected billings growth range of 23% to 24% for the fiscal.

Non-GAAP earnings are forecasted in the range of 55 cents to 57 cents, up from the earlier guided range of 54 cents to 56 cents.

The Zacks Consensus Estimate for fiscal 2017 and 2018 remained steady at 36 cents and 50 cents, respectively, over the last 7 days.

Stocks to Consider

Better-ranked stocks in the same space are Paylocity Holding Corporation PCTY, 2U Inc. TWOU and Amber Road Inc. AMBR. While Paylocity Holding sports a Zacks Rank #1 (Strong Buy), 2U and Amber carry a Zacks Rank #2 (Buy).
 

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AMBER ROAD INC (AMBR): Free Stock Analysis Report
 
VEEVA SYSTEMS-A (VEEV): Free Stock Analysis Report
 
PAYLOCITY HLDG (PCTY): Free Stock Analysis Report
 
2U INC (TWOU): Free Stock Analysis Report
 
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