Enterprise software company Workday (NASDAQ:WDAY) will be announcing earnings results this Thursday after the bell. Here’s what you need to know.
Workday beat analysts’ revenue expectations last quarter, reporting revenues of $2.54 billion, up 13.5% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ billings and adjusted operating income estimates.
Is Workday a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Workday’s revenue to grow 12.3% year on year, in line with the 12.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Workday has a history of exceeding Wall Street’s expectations.
Looking at Workday’s peers in the finance and hr software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. BILL delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 1.4%, and Paycom reported revenues up 9.8%, topping estimates by 3.5%. BILL’s stock price was unchanged after the resultswhile Paycom was up 23.6%.
Read our full analysis of BILL’s results here and Paycom’s results here.
There has been positive sentiment among investors in the finance and hr software segment, with share prices up 14.3% on average over the last month. Workday is up 31.1% during the same time and is heading into earnings with an average analyst price target of $188.21 (compared to the current share price of $193.37).
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