Why Veeva Systems shares are plunging today

Shares of Veeva Systems Inc VEEV are trading lower on Thursday after the company reported financial results and issued guidance below analysts' estimates.

Second Quarter Results: Veeva Systems Reported Second Quarter Revenue of $534.2 Million, Exceeding Average Analyst Estimates of $530.61 Million , according to Benzinga Pro. Veeva's early results jumped 17% year-over-year.

The company reported second-quarter earnings of $1.03 per share, up from 94 cents per share year-over-year.

"We are very confident in our competitive position and are delivering strong financial results as we are ahead of our 2025 targets," said Brent Bowman, Chief Financial Officer of Veeva Systems.

Outlook: Veeva Systems expects third quarter revenue to be between $545 million and $547 million, versus an estimate of $558.28 million. The company expects third quarter earnings to be between $1.07 and $1.08 per share.

Veeva Systems expects annual revenue of between $2.14 billion and $2.145 billion, versus an estimate of $2.17 billion. The company expects annual earnings of approximately $4.17 per share.

See also: Why Applied Materials shares are trading lower

Analyst Assessment: Several analysts adjusted share price targets following the company's quarterly results.

Piper Sandler analyst Brent Bracelin kept Veeva overweight and lowered the price target from $275 to $245. Barclays analyst Saket Kalia maintained Veeva with equal weight and lowered the price target from $222 to $205. UBS analyst Karl Keirstead held Veeva with a neutral and lowered the price target from $220 to $185. Baird analyst Joe Vruwink maintained Veeva with an outperformance and lowered the price target from $267 to $250. Raymond James analyst Brian Peterson maintained Veeva with an outperformance and raised the price target from $205 to $225.

VEEV Price Action: Veeva Systems has a 52-week high of $257.68 and a 52-week low of $152.04.

The stock was down 16.1% at $167.17 at press time.

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