Medical software publisher Veeva Systems (VEEV) issued a light sales forecast for the current quarter and full year, leading VEEV stock to fall on Thursday.
The outlook disappointment comes on the heels of a July quarter pace.
“We are very confident in our competitive position and are delivering strong financial results as we are ahead of our 2025 targets,” chief financial officer Brent Bowman said in a written statement.
But on the stock market todayVEEV stock fell 14% to 171.42.
VEEV stock slips despite quarterly growth
Veeva’s adjusted earnings climbed nearly 10% to $1.03 per share in the quarter ended July 31. That exceeded expectations by two cents, according to FactSet. Revenue also jumped more than 17% to $534.2 million and beat VEEV stock analysts’ forecast for $531 million.
The increase in sales aligned with Veeva’s subscription services. Revenue for this division grew 17% year-over-year to $366.4 million.
For the current quarter, Veeva expects to earn between $1.07 and $1.08 per share. Earnings forecasts were in line with calls at $1.08. But the sales forecast was poor. Veeva called for sales of $545-547 million. Even the high end of the outlook missed the forecast by $558 million.
Veeva also guided to adjusted earnings of $4.17 per share on full-year sales of $2.14 billion to $2.145 billion. While the earnings outlook was slightly above expectations of $4.15 per share, Veeva’s revenue forecast was well below stock analysts’ forecast for VEEV for $2.17 billion in sales.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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