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Workday (WDAY) to Report Q3 Earnings: What's in Store?
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Workday (WDAY - Free Report) is scheduled to report third-quarter fiscal 2022 results on Nov 18.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 87 cents per share, indicating an improvement of 1.2% from the figure reported in the year-ago quarter. The consensus estimate for earnings has been stable in the past 30 days.
The consensus mark for fiscal third-quarter revenues is currently pegged at $1.31 billion, suggesting a rise of 18.4% from the figure reported in the year-ago quarter.
Let’s see how things have shaped up for Workday prior to this announcement.
Factors to Consider
Workday’s fiscal third-quarter performance is likely to have benefited from healthy demand for its cloud-based human capital management (HCM) solutions and financial management solutions.
Workday has a diverse product portfolio, which continues to yield a steady flow of customers. Workday has been gaining traction in the international markets. These factors are expected to have aided top-line growth.
Workday’s HR, finance and planning solutions continue to gain traction, driven by the growing demand from large enterprises. For the fiscal third quarter, Workday expects subscription revenues in the range of $1.156-$1.158 billion. The Zacks Consensus Estimate is pegged at $1.16 billion, indicating growth of 19.7% from the figure reported in the year-ago quarter.
The coronavirus pandemic has accelerated digital transformation for corporates across all the industries. This is anticipated to have led to the robust uptake of Workday Adaptive Planning, Workday Prism Analytics and Workday Strategic Sourcing as well as Spend Management offerings. This is likely to have benefited the top line in the to-be-reported quarter.
Professional services revenues for the fiscal third quarter are projected to be $150 million, driven by new business trends. The Zacks Consensus Estimate is pegged at $150 million, suggesting an increase of 9.5% from the figure reported in the year-ago quarter.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Workday has an Earnings ESP of -0.86 and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering per our model, as these have the right combination of elements to beat on earnings this reporting cycle:
Applied Materials’ shares have surged 81.1% year to date compared with the Zacks Semiconductor Equipment - Wafer Fabrication industry’s rally of 66.5% and the Computer & Technology sector’s return of 27.9%.
Agilent Technologies (A - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3.
Agilent’s shares have returned 33.1% year to date compared with the Zacks Electronics- Testing Equipment industry’s growth of 17.3%. Agilent has outperformed the Computer & Technology sector’s return of 27.9% year to date.
Intuit (INTU - Free Report) has an Earnings ESP of +1.87% and a Zacks Rank of 3.
Intuit’s shares have soared 64.8% year to date compared with the Zacks Computer Software industry’s growth of 42.3%. Intuit has outperformed the Computer & Technology sector’s return of 27.9% year to date.
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Workday (WDAY) to Report Q3 Earnings: What's in Store?
Workday (WDAY - Free Report) is scheduled to report third-quarter fiscal 2022 results on Nov 18.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 87 cents per share, indicating an improvement of 1.2% from the figure reported in the year-ago quarter. The consensus estimate for earnings has been stable in the past 30 days.
The consensus mark for fiscal third-quarter revenues is currently pegged at $1.31 billion, suggesting a rise of 18.4% from the figure reported in the year-ago quarter.
Let’s see how things have shaped up for Workday prior to this announcement.
Factors to Consider
Workday’s fiscal third-quarter performance is likely to have benefited from healthy demand for its cloud-based human capital management (HCM) solutions and financial management solutions.
Workday, Inc. Price and EPS Surprise
Workday, Inc. price-eps-surprise | Workday, Inc. Quote
Workday has a diverse product portfolio, which continues to yield a steady flow of customers. Workday has been gaining traction in the international markets. These factors are expected to have aided top-line growth.
Workday’s HR, finance and planning solutions continue to gain traction, driven by the growing demand from large enterprises. For the fiscal third quarter, Workday expects subscription revenues in the range of $1.156-$1.158 billion. The Zacks Consensus Estimate is pegged at $1.16 billion, indicating growth of 19.7% from the figure reported in the year-ago quarter.
The coronavirus pandemic has accelerated digital transformation for corporates across all the industries. This is anticipated to have led to the robust uptake of Workday Adaptive Planning, Workday Prism Analytics and Workday Strategic Sourcing as well as Spend Management offerings. This is likely to have benefited the top line in the to-be-reported quarter.
Professional services revenues for the fiscal third quarter are projected to be $150 million, driven by new business trends. The Zacks Consensus Estimate is pegged at $150 million, suggesting an increase of 9.5% from the figure reported in the year-ago quarter.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Workday has an Earnings ESP of -0.86 and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering per our model, as these have the right combination of elements to beat on earnings this reporting cycle:
Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials’ shares have surged 81.1% year to date compared with the Zacks Semiconductor Equipment - Wafer Fabrication industry’s rally of 66.5% and the Computer & Technology sector’s return of 27.9%.
Agilent Technologies (A - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3.
Agilent’s shares have returned 33.1% year to date compared with the Zacks Electronics- Testing Equipment industry’s growth of 17.3%. Agilent has outperformed the Computer & Technology sector’s return of 27.9% year to date.
Intuit (INTU - Free Report) has an Earnings ESP of +1.87% and a Zacks Rank of 3.
Intuit’s shares have soared 64.8% year to date compared with the Zacks Computer Software industry’s growth of 42.3%. Intuit has outperformed the Computer & Technology sector’s return of 27.9% year to date.