Stock markets will react to three companies that posted quarterly results in the last day.
Veeva Systems (VEEV) should open higher after it reported non-GAAP EPS of $2.35. Revenue grew by 17.6% Y/Y to $928 million. Its revenue forecast for Q3 of up to $935 million is higher than analysts expected. For the year, Veeva’s non-GAAP EPS is around $9.21.
Veeva continued to grow its cash on hand. In addition, it has strong returns from its investments. Its ROIC is the best in the SaaS space.
Cybersecurity firm CrowdStrike (CRWD) posted revenue growth of 25.6% Y/Y, to $1.47 billion. Its healthy net new recurring revenue reaffirms the company’s moat. The company’s peers that readers might consider include Cloudflare (NET), Palo Alto Networks (PANW), and Zscaler (ZS).
Dycom Industries (DY) dropped by 11.6% on Wednesday. It reported contract revenue up by 45.6% to $2.01 billion. Adjusted EPS rose to $5.29, up from $3.64 last year.
DY stock fell because investors reacted to signs that its core communications segment faced pressure. It deferred around $150 million in its wireless program revenue. However, the program scope did not change. In addition, Dycom spent more to expand its operations. Higher fuel costs and weakening operating leverage from the delayed work dragged on its results.
The sell-off is an overreaction. Investors should add Dycom to the watch list.
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