Veeva Stock Toys With The No. 1 Sell Rule Despite Its Quarterly Beat

 Veeva Stock Toys With The No. 1 Sell Rule Despite Its Quarterly Beat

Veeva Systems (VEEV) handily beat second-quarter forecasts Wednesday and crushed guidance estimates, but VEEV stock tumbled in after-hours action.




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During the second quarter, Veeva earned 94 cents per share on $455.6 million in sales. Earnings popped nearly 31% year over year and topped FactSet’s forecast by 7 cents. Sales advanced 29% vs. the year-earlier period and beat VEEV stock analysts’ view for $452 million.

But in after-hours trading on the stock market today, VEEV stock toppled 9.5% near 302. During the regular session, shares rose 0.6% to 333.82.

VEEV Stock Falls Despite Beat

Chief Executive Peter Gassner called it a “great quarter” for Veeva. Subscription sales for the medical software giant also jumped 29% year over year to $366.4 million.

For the fiscal 2022 year, Veeva guided to adjusted income of $3.57 per share. VEEV stock analysts called for adjusted profit of $3.50 a share. The company also expects $1.83 billion to $1.835 billion in sales, above forecasts for $1.82 billion.

Veeva shares have a strong Composite Rating of 93 out of a best-possible 99, according to IBD Digital. This puts VEEV stock in the leading 7% of all stocks in terms of fundamental and technical growth measures.

But, if the after-hours action holds, it would put shares dangerously close to a sell zone. Shares topped a buy point at 325.64 out of a cup base in mid-July, according to MarketSmith.com. Investors are encouraged to cut their losses when a stock falls 7%-8% below a buy point. For VEEV stock, that runs from 299.59-302.85.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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