Here's Why Veeva Systems' Stock Rose 19% in June
Shares of Veeva Systems (NYSE: VEEV) climbed higher in June following a well-received quarterly earnings report. The stock enjoyed surging momentum immediately following the announcement of its financial results as investors welcomed better-than-expected results and a sufficiently bullish outlook. Veeva was able to maintain those gains over the remainder of the month, closing out the period up 19%, according to S&P Global Market Intelligence.
At first glance, the news wasn't spectacular. Veeva reported 4% revenue growth, marking a significant deceleration from prior years. The company also endured a significant decline in operating income, thanks to higher costs of revenue and increases across every expense category. However, event-driven moves in the stock market are all about shifting expectations. While Veeva's results weren't particularly inspiring on their own, they still exceeded Wall Street's forecasts. Veeva's top line was higher than expected, and it also delivered impressive earnings-per-share (EPS) and cash-flow numbers.
Most importantly, the company's updated guidance was above analyst forecasts. Growth stocks can trigger significant optimism by publishing a relatively bullish outlook. Veeva is still expecting just under 10% revenue growth this year, and it's looking for an acceleration to nearly 20% growth the following year.
Source Fool.com
