Workday (WDAY) Reports Earnings Today. What To Expect

Anthony Lee /
2023/02/27 4:34 am EST
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Finance and HR software company Workday (NASDAQ:WDAY) will be reporting results today afternoon. Here's what to expect.

Last quarter Workday reported revenues of $1.6 billion, up 16.2% year on year, missing analyst expectations by 2.95%. It was a weak quarter for the company, with a miss of the top line analyst estimates and slow revenue growth.

Is Workday buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Workday's revenue to grow 17.5% year on year to $1.69 billion, slowing down from the 22.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.06 per share.

Workday Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 0.58%.

Looking at Workday's peers in the HR software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Ceridian delivered top-line growth of 19.1% year on year, beating analyst estimates by 3.39% and Paycom Software reported revenues up 30% year on year, exceeding estimates by 1.06%. Ceridian traded up 7.48% on the results, Paycom Software was down 1.73%. Read our full analysis of Ceridian's results here and Paycom Software's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 0.93% over the last month.  Workday is up 3.96% during the same time, and is heading into the earnings with analyst price target of $205.44, compared to share price of $183.47.

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The author has no position in any of the stocks mentioned.