Workday's stock falls after earnings, but this analyst sees no 'thesis breakers'
By Emily Bary
Company plans to acquire HiredScore for terms not disclosed
Shares of Workday Inc. fell 8% in after-hours trading Monday after the company topped profit expectations for the latest quarter but merely met expectations on revenue and reiterated its full-year forecast.
On an adjusted basis, Workday (WDAY) earned $1.57 a share for its fiscal fourth quarter, whereas analysts were modeling $1.47 a share. Workday logged revenue of $1.92 billion, up from $1.65 billion a year before and matching the FactSet consensus.
The software company continues to expect $7.725 billion to $7.775 billion in revenue for the full fiscal year, consistent with its prior forecast given three months ago.
Workday's outlook struck Evercore ISI analyst Kirk Materne as slightly conservative, though he remained upbeat on shares after the report.
"Not surprised to see shares down a bit in the after-market given a fairly small beat and reiteration of the guide, but we do not see any major 'thesis breakers' in the results," he wrote, as he kept his outperform rating.
See also: Unity's stock sheds nearly a fifth of its value as earnings, forecast underwhelm
The company reported fiscal fourth-quarter net income of $1.2 billion, or $4.52 cents a share, whereas it reported a net loss of $126 million, or 49 cents a share, in the year-earlier period. Net income in the latest quarter reflected a $1.1 billion release of a valuation allowance related to deferred tax assets.
For the fiscal first quarter, Workday models $1.973 billion in total revenue along with $1.810 billion in subscription revenue. That compares with consensus estimates for $1.917 billion and $1.758 billion, respectively.
The company also announced plans to acquire HiredScore for terms not disclosed in its release. Workday described HiredScore as "a leading provider of AI-powered talent orchestration solutions."
-Emily Bary
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
02-26-24 2134ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
How Anti-Obesity Drugs Are Innovating the Healthcare Market
-
What’s Happening In the Markets This Week
-
Why Immigration Has Boosted Job Gains and the Economy
-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
After Earnings, Is Lyft Stock a Buy, a Sell, or Fairly Valued?
-
8 Stock Picks in the Apparel Industry
-
Baidu Earnings: Advertising Weakness Offset by Continued Growth In Cloud Business
-
Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?
-
Walmart Earnings: Low Prices and Strong Digital Presence Drive Market Share Gains
-
After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?
-
Cisco Earnings: Positive Guidance and Splunk Inclusion Align With Our Long-Term Thesis
-
3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing