Veeva Systems (VEEV) Q1 Earnings: What's In The Cards?

Veeva Systems Inc. (NYSE:VEEV) is set to report first-quarter fiscal 2017 results on May 26. Last quarter, the company reported earnings of 12 cents, which beat the Zacks Consensus Estimate by a nickel. Notably, the company posted an average positive surprise of 15.98% over the last four quarters.

Let’s see how things are shaping up for this announcement.

Factors at Play

Veeva expects total revenues in the range of $114.5–116 million for the first quarter of fiscal 2017. Meanwhile, non-GAAP operating income is expected between $25.5 million and $26 million. Non-GAAP earnings are likely to be around 11 cents per share.

Extended use of multi-channel Customer Relationship Management (CRM) application by customers continues to be a key growth catalyst for the company. We believe product suites like Veeva Vault and OpenData will help win customers for Veeva.

Further, we note that Veeva is making consistent efforts to best support customer data needs globally. Veeva OpenData is supported by its data centers in the U.S., China, Japan, Hungary and Brazil. Moreover, expanding partner ecosystem is helping Veeva offer its customers easy access to third-party data.

Earnings Whispers

Our proven model does not conclusively show that Veeva is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Veeva has an earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 7 cents.

Zacks Rank: Veeva carries a Zacks Rank #3 which increases the predictive power of the ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat:

Air Methods (NASDAQ:AIRM) , with earnings ESP of +1.05% and a Zacks Rank #1.

CONMED (NASDAQ:CNMD) , with earnings ESP of +2.22% and a Zacks Rank #2.

Laboratory Corp. of America Holdings (NYSE:LH) , with earnings ESP of +.87% and a Zacks Rank #2.