Wall Street analysts forecast that Workday (WDAY) will report quarterly earnings of $2.30 per share in its upcoming release, pointing to a year-over-year increase of 19.8%. It is anticipated that revenues will amount to $2.52 billion, exhibiting an increase of 14.1% compared to the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
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.
In light of this perspective, let's dive into the average estimates of certain Workday metrics that are commonly tracked and forecasted by Wall Street analysts.
It is projected by analysts that the 'Revenues- Subscription services' will reach $2.36 billion. The estimate indicates a change of +15.5% from the prior-year quarter.
Analysts predict that the 'Revenues- Professional services' will reach $167.85 million. The estimate indicates a change of -1.8% from the prior-year quarter.
Based on the collective assessment of analysts, 'Subscription Revenue Backlog' should arrive at $29.86 billion. Compared to the present estimate, the company reported $25.06 billion in the same quarter last year.
View all Key Company Metrics for Workday here>>>
Workday shares have witnessed a change of -22.2% in the past month, in contrast to the Zacks S&P 500 composite's -0.8% move. With a Zacks Rank #2 (Buy), WDAY is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Workday, Inc. (WDAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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