Shares of Veeva Systems (NYSE:VEEV) are posting big gains in Thursday's trading despite broader sell-offs for the tech sector. The life-sciences software company's stock was up 10.2% as of 12:30 p.m. ET today.
Veeva Systems reported its fourth-quarter results after the market closed yesterday and posted better-than-expected sales and earnings results. The company's outlook also topped Wall Street's expectations.
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Veeva stock rises on a strong Q4
Adjusted earnings per share (EPS) of $1.74 on sales of $720.89 million topped the average analyst estimate's call for EPS of $1.58 on sales of $699.39 million.
Revenue rose 14.3% year over year in the fourth quarter, and adjusted EPS was up 26% compared to last year's quarter. It was a strong period for the business, wit subscription services revenue climbing 17% year over year to $608.6 million, helping to power substantial sales and earnings beats.
Earnings guidance came in significantly ahead of Wall Street's targets
For the first quarter, Veeva guided for sales between $726 million and $729 million, beating the average Wall Street forecast for sales of $725.82 million. Even better, adjusted EPS is projected to come in between $1.74 and $1.75, beating the average analyst forecast for $1.62.
And while the company's full-year target for revenue between $3.04 billion and $3.055 billion fell slightly short of the consensus forecast of $3.06 billion, guidance for adjusted EPS of roughly $7.32 came in far better than Wall Street's target for $6.97. Momentum looks strong as growth for subscription services is powering expansion and supporting strong margins.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Veeva Systems. The Motley Fool has a disclosure policy.
