Workday jumps 11% after 2nd-quarter earnings beat and another raise in its full-year guidance

workday
Workday Inc. Co-Founders Bhusri and Duffield ring the opening bell at the New York Stock Exchange
  • Workday jumped as much as 11% on Friday after its second-quarter earnings surpassed analyst estimates.
  • The cloud company also raised its full-year guidance for the second time this year.
  • "We continue to view Workday as well positioned to take share over the long-term," Goldman Sachs said in a post-earnings note.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of Workday soared as much as 11% on Friday following stronger than expected second-quarter earnings and a bright outlook going forward.

The cloud company beat analyst estimates with year-over-year revenue growth of 19%, and raised its full-year guidance for the second time this year.

Here were the key numbers:

Revenue: $1.26 billion, versus estimates of 1.24 billion
Adjusted earnings per share: $1.23, versus estimates of $0.77
Backlog: $10.58 billion, versus estimates of $10.50 billion

Workday said it expects full-year subscription revenue of $4.5 billion, well above its prior estimate of $4.25 billion to $4.44 billion. The company also raised its non-GAAP operating margin guidance to 21% for its fiscal year of 2022.

"Our business continues to accelerate, fueled by growing demand from large enterprise customers for our industry leading HR, finance, and planning solutions to drive transformation at scale," Workday co-CEO Chano Fernandez said.

The strong earnings results helped Workday's stock surge to a six-month high, trading just 3% below its all-time high reached in mid-February.

Goldman Sachs was impressed with Workday's earnings results, as it raised its price target on the stock to $330 from $300, representing potential upside of 34% from Thursday's close. The bank said the earnings report validated its thesis that the company will grow into a $10 billion annual revenue company, "catalyzed by financials moving to the cloud," according to a Friday note.

"We continue to view Workday as well positioned to take share over the long-term," Goldman Sachs concluded.

Workday Stock Price
Read the original article on Business Insider


Contributer : Business Insider https://ift.tt/3sQEmRM
Workday jumps 11% after 2nd-quarter earnings beat and another raise in its full-year guidance Workday jumps 11% after 2nd-quarter earnings beat and another raise in its full-year guidance Reviewed by mimisabreena on Saturday, August 28, 2021 Rating: 5

No comments:

Sponsor

Powered by Blogger.