We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Solid Revenue Growth Boost Workday's (WDAY) Q4 Earnings?
Read MoreHide Full Article
Workday, Inc. (WDAY - Free Report) is set to release fourth-quarter fiscal 2024 results on Feb 26, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 13.23% on average.
Based in Pleasanton, CA, the company is expected to have recorded higher revenues driven by solid demand for its human capital management (HCM) and financial management solutions, along with its wide-ranging product portfolio, which continues to attract customers across the market. Management’s focus on integrating advanced artificial intelligence (AI) and machine learning (ML) capabilities is a tailwind.
Factors at Play
During the quarter, Workday announced an expanded collaboration with Accenture to help companies accelerate their adoption of skills-based talent strategies to unleash greater agility and potential. The AI-powered Workday Skill Cloud will enable businesses to effectively determine reskilling and upskilling opportunities within their operations that maximize future growth potential.
An integrated skills accelerator that leverages Workday Learning, Workday Journeys and Workday Prism is preconfigured with Accenture talent transformation capabilities to eliminate the disparities in skills and competencies among individuals or within a workforce. This is likely to have boosted revenues in the quarter.
Workday’s revenues continue to be aided by high demand for its HCM and financial management solutions. The company’s cloud-based business model and expanding product portfolio have been the primary growth drivers. Moreover, the growing clout of Workday Prism Analytics and Adaptive Insights business planning cloud offerings holds promise.
The company is expanding its portfolio beyond core HCM solutions into the financial domain. It is customizing them for diverse industries and verticals, such as education, the public and financial services, among others. This has helped it witness strong renewals and expand its customer base as business enterprises aim to consolidate spend and improve efficiency levels. The expanding product portfolio base is likely to have aided its fourth-quarter performance.
Our estimate for Subscription Services revenues is pegged at $1,755 million, suggesting 17.4% year-over-year growth. Our estimate for Professional Services revenues is pegged at $158 million.
For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $1,913 million, up from the year-ago quarter’s reported figure of $1,646 million. The consensus estimate for adjusted earnings per share is pegged at $1.44, suggesting an increase from 99 cents reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for Workday for the fiscal fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.44. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Workday currently carries a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
CommScope (COMM - Free Report) is scheduled to report quarterly numbers on Feb 29. It has an Earnings ESP of +9.09% and a Zacks Rank of 3.
Heico (HEI - Free Report) is scheduled to report quarterly numbers on Feb 26. It has an Earnings ESP of +1.77% and a Zacks Rank of 2.
VTEX (VTEX - Free Report) is scheduled to report quarterly numbers on Feb 27. It has an Earnings ESP of +500.01% and a Zacks Rank of 2.
Image: Bigstock
Will Solid Revenue Growth Boost Workday's (WDAY) Q4 Earnings?
Workday, Inc. (WDAY - Free Report) is set to release fourth-quarter fiscal 2024 results on Feb 26, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 13.23% on average.
Based in Pleasanton, CA, the company is expected to have recorded higher revenues driven by solid demand for its human capital management (HCM) and financial management solutions, along with its wide-ranging product portfolio, which continues to attract customers across the market. Management’s focus on integrating advanced artificial intelligence (AI) and machine learning (ML) capabilities is a tailwind.
Factors at Play
During the quarter, Workday announced an expanded collaboration with Accenture to help companies accelerate their adoption of skills-based talent strategies to unleash greater agility and potential. The AI-powered Workday Skill Cloud will enable businesses to effectively determine reskilling and upskilling opportunities within their operations that maximize future growth potential.
An integrated skills accelerator that leverages Workday Learning, Workday Journeys and Workday Prism is preconfigured with Accenture talent transformation capabilities to eliminate the disparities in skills and competencies among individuals or within a workforce. This is likely to have boosted revenues in the quarter.
Workday’s revenues continue to be aided by high demand for its HCM and financial management solutions. The company’s cloud-based business model and expanding product portfolio have been the primary growth drivers. Moreover, the growing clout of Workday Prism Analytics and Adaptive Insights business planning cloud offerings holds promise.
The company is expanding its portfolio beyond core HCM solutions into the financial domain. It is customizing them for diverse industries and verticals, such as education, the public and financial services, among others. This has helped it witness strong renewals and expand its customer base as business enterprises aim to consolidate spend and improve efficiency levels. The expanding product portfolio base is likely to have aided its fourth-quarter performance.
Our estimate for Subscription Services revenues is pegged at $1,755 million, suggesting 17.4% year-over-year growth. Our estimate for Professional Services revenues is pegged at $158 million.
For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $1,913 million, up from the year-ago quarter’s reported figure of $1,646 million. The consensus estimate for adjusted earnings per share is pegged at $1.44, suggesting an increase from 99 cents reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for Workday for the fiscal fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.44. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Workday, Inc. Price and EPS Surprise
Workday, Inc. price-eps-surprise | Workday, Inc. Quote
Zacks Rank: Workday currently carries a Zacks Rank #3.Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
CommScope (COMM - Free Report) is scheduled to report quarterly numbers on Feb 29. It has an Earnings ESP of +9.09% and a Zacks Rank of 3.
Heico (HEI - Free Report) is scheduled to report quarterly numbers on Feb 26. It has an Earnings ESP of +1.77% and a Zacks Rank of 2.
VTEX (VTEX - Free Report) is scheduled to report quarterly numbers on Feb 27. It has an Earnings ESP of +500.01% and a Zacks Rank of 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.