Wall Street analysts forecast that Workday (WDAY) will report quarterly earnings of $1.40 per share in its upcoming release, pointing to a year-over-year increase of 41.4%. It is anticipated that revenues will amount to $1.84 billion, exhibiting an increase of 15.3% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company’s earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company’s quarterly performance, scrutinizing analysts’ projections for some of the company’s key metrics can offer a more comprehensive perspective.
Bearing this in mind, let’s now explore the average estimates of specific Workday metrics that are commonly monitored and projected by Wall Street analysts.
The collective assessment of analysts points to an estimated ‘Revenues- Subscription services’ of $1.68 billion. The estimate points to a change of +17.2% from the year-ago quarter.
According to the collective judgment of analysts, ‘Revenues- Professional services’ should come in at $165.02 million. The estimate indicates a year-over-year change of -1%.
Based on the collective assessment of analysts, ‘Subscription Revenue Backlog’ should arrive at $17.68 billion. Compared to the current estimate, the company reported $14.10 billion in the same quarter of the previous year.
View all Key Company Metrics for Workday here>>>
Shares of Workday have experienced a change of +13.1% in the past month compared to the +8% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), WDAY is expected to outperform the overall market in the near future. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
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