Workday’s second quarter earnings edged past analysts’ expectations, while the company boosted its FY 2020 subscription revenue outlook.
The cloud-based financial management and human capital management software vendor reported a non-GAAP net earnings per diluted share of 44 cents, which is higher than the Street estimates of 35 cents. The EPS is also higher than the year-ago quarter’s 31 cents.
Revenue surged +32% from the prior year’s quarter to $887.8 million, also surpassing analysts’ expectation of $872.31 million.
The company’s subscription revenue for the quarter was $757.2 million, marking a +33.9% increase from the same period last year.
Some of the new customers that Workday added In the second quarter, included The Gap, Stanley Black & Decker, and Rockwell Automation in North America, and Stores Limited in Europe, and Buntings Group Limited in the Asia Pacific-Japan region.
Looking ahead, Workday projects fiscal full-year 2020 subscription revenue to range between $3.06 billion and $3.07 billion. For the third quarter, the company’s forecast for subscription revenue is between $783 million and $785 million.
WDAY's Aroon Indicator triggered a bullish signal on February 23, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 239 similar instances where the Aroon Indicator showed a similar pattern. In of the 239 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where WDAY's RSI Oscillator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 19, 2024. You may want to consider a long position or call options on WDAY as a result. In of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for WDAY just turned positive on March 20, 2024. Looking at past instances where WDAY's MACD turned positive, the stock continued to rise in of 54 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WDAY advanced for three days, in of 329 cases, the price rose further within the following month. The odds of a continued upward trend are .
WDAY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 69 cases where WDAY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
WDAY moved below its 50-day moving average on March 04, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for WDAY crossed bearishly below the 50-day moving average on March 07, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WDAY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. WDAY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.945) is normal, around the industry mean (28.767). P/E Ratio (52.522) is within average values for comparable stocks, (148.690). Projected Growth (PEG Ratio) (2.413) is also within normal values, averaging (2.798). Dividend Yield (0.000) settles around the average of (0.085) among similar stocks. P/S Ratio (10.000) is also within normal values, averaging (77.911).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of software based enterprise business solutions
Industry PackagedSoftware