Workday Inc (NYSE:WDAY)
Workday Inc. Earnings & Technicals
On Tuesday after the close, Workday Inc. WDAY announced first quarter earnings results that topped analyst expectations but shares sold off anyways in the post market session. The company announced first quarter adjusted earnings per share of 5 cents on $345.4 million in revenues while analysts were looking for a loss of 2 cents per share on $338.7 million in revenues. The company also announced guidance for the second quarter with revenue ranging between $371 and $373 million while analysts were looking for $370.9 million. This was a beat on all accounts but I think what investors are focusing on is how expenses have increased 37% this quarter from $304.4 million to $419 million. That is a big jump and should be something to keep an eye on going forward.
Shares took a dive in the post market session to lows of $71 after closing the day at $75.84, a 6.3% decrease in value. Look for support to come in at $70 followed by $69 with resistance coming in at $73.65 and $72.50. Shares are now below their 200-day moving average that is sitting at $73.65 and are looking to continue their trend south. If shares can’t hold $70 land $69 levels then we could be in for a nice move back down to the $50 range. Currently analysts have an average price target of $76.29.
Executive Comments
“We delivered great results and growth across all of our products in the first quarter,” said Aneel Bhusri, co-founder and CEO, Workday. “We continue to see increased customer adoption of Workday Financial Management as well as strong demand in EMEA and APJ as more organizations take finance and HR to the cloud. We are on track to deliver innovative new products — Workday Planning, Workday Learning, and Workday Student — later this year, which we believe will accelerate our momentum based on extremely positive customer feedback and interest.”
“We started fiscal 2017 with strong first quarter results,” said Robynne Sisco, chief financial officer, Workday. “We generated record quarterly revenues as well as strong billings growth and trailing twelve month operating cash flows. Looking ahead, we anticipate second quarter total revenues to be within a range of $371 to $373 million or growth of 31% to 32% as compared to the prior year.”
WDAY Profile
Workday, Inc. provides enterprise cloud applications for finance and human resources in the United States and internationally. It offers applications for customers to manage critical business functions that enable them to optimize their financial and human capital resources. The company provides Workday Financial Management application that provides functions of general ledger, accounting, accounts payable, accounts receivable, cash management, asset management, employee expense management, revenue management, projects, procurement, inventory, and grants management.
It also provides Workday Human Capital Management application that includes human resources management comprising workforce lifecycle management, organization management, compensation, absence, and employee benefits administration; and global talent management consisting of goal management, performance management, succession planning, and career and development planning. In addition, the company offers Workday Recruiting, an application that supports the needs of candidates, hiring managers, the interview team, and recruiters; Workday Payroll application that address the enterprise payroll needs; Workday Time Tracking application that automates workforce management processes; and Workday Professional Services Automation application.
Further, it offers Workday Insight Applications that leverage advanced data science and machine learning methodologies to help customers make smarter financial and workforce decisions; and Workday Student, a student and faculty lifecycle information system. The company serves technology, financial services, business and professional services, healthcare and life sciences, manufacturing, retail and hospitality, education, and government and non-profit industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was founded in 2005 and is headquartered in Pleasanton, California.