Wall Street analysts forecast that Workday (WDAY) will report quarterly earnings of $1.99 per share in its upcoming release, pointing to a year-over-year increase of 14.4%. It is anticipated that revenues will amount to $2.22 billion, exhibiting an increase of 11.3% compared to the year-ago quarter.
The current level reflects a downward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
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.
Analysts expect 'Revenues- Subscription services' to come in at $2.05 billion. The estimate indicates a year-over-year change of +13%.
Based on the collective assessment of analysts, 'Revenues- Professional services' should arrive at $165.09 million. The estimate suggests a change of -5.7% year over year.
Analysts forecast 'Subscription Revenue Backlog' to reach $25.32 billion. Compared to the present estimate, the company reported $20.68 billion in the same quarter last year.
View all Key Company Metrics for Workday here>>>
Shares of Workday have demonstrated returns of +23.5% over the past month compared to the Zacks S&P 500 composite's +13.1% change. With a Zacks Rank #3 (Hold), WDAY is expected to mirror the overall market performance in the near future. 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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