Clicky

  • Login
  • Register
  • Submit Your Content
  • Contact Us
Saturday, August 24, 2024
World Tribune
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
Submit
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
No Result
View All Result
World Tribune
No Result
View All Result

Workday stock gains as software provider widens 2027 margin target

August 24, 2024
in News
Reading Time: 3 mins read
A A
Workday stock gains as software provider widens 2027 margin target
0
SHARES
ShareShareShareShareShare

READ ALSO

‘More restrictive policy’ may still be needed

Trump DJT stock could be sold within weeks

Carl Eschenbach, co-CEO of Workday, speaking on CNBC’s “Squawk Box” at the World Economic Forum Annual Meeting in Davos, Switzerland, on Jan. 18, 2024.

Adam Galici | CNBC

Workday shares soared 12% on Friday, one day after the finance and human resources software maker issued fiscal second-quarter results that exceeded analysts’ estimates and announced plans to further widen its adjusted operating margin through 2027.

Here is how the company did, compared to LSEG consensus:

  • Earnings per share: $1.75 adjusted vs. $1.65 expected
  • Revenue: $2.085 billion vs. $2.071 billion expected

Workday’s revenue was up about 17% year over year in the quarter ending July 31, according to a statement. Subscription revenue growth grew 17%. Net income, at $132 million, or 49 cents per share, increased from $79 million, or 30 cents per share, in the same quarter a year ago.

With respect to guidance, Workday is now looking for an adjusted operating margin of 25.25% in the 2025 fiscal year, compared to the 25% forecast it provided in May.

On a Thursday conference call with analysts, Zane Rowe, Workday’s finance chief, said he expects the company’s adjusted operating margin to expand to 30% in the 2026 and 2027 fiscal years, along with an annual subscription revenue growth of 15%. In September 2023, Workday said it was targeting a 25% adjusted operating margin for fiscal 2027 and subscription revenue growth between 17% and 19%.

“We are relentlessly focused on scaling all of our processes across the company as we review our product and go-to-market initiatives,” Rowe said. “We’re also becoming increasingly more targeted in our growth investments, balancing product development with go-to-market resources.”

Deutsche Bank analysts led by Brad Zelnick increased their 12-month price target on Workday stock to $275 from $265. They have a hold rating on the stock.

“The increased 30% operating margin target was the big upside surprise as it is now committed both sooner and greater than most were expecting,” the analysts wrote.

Citi, Evercore ISI and Piper Sandler analysts also raised their Workday price targets following the company’s report.

Conditions aren’t perfect for Workday, however. Organizations are still being more careful than usual before agreeing to sign contracts, Rowe said, adding that headcount growth among the existing customer base has slowed down.

Many other software companies have pointed to rougher economic conditions in recent quarters. But on Friday, Federal Reserve Chair Jerome Powell said “the time has come for policy to adjust,” an indication that the central bank will lower its benchmark rate. That might benefit growing cloud software companies such as Workday. Investors moved away from those assets and opted for more defensive investments in 2022 as they anticipated rate hikes to ward off inflation.

The WisdomTree Cloud Computing Fund, an exchange-traded fund that includes Workday, ended the day up 2% in Friday’s trading session. The S&P 500 index gained 1%.

But Workday CEO Carl Eschenbach did not suggest that market conditions will improve soon.

“In fact, we think the current environment of IT spending and the environment we’re selling into isn’t something that’s just been here the last couple quarters,” he said. “We think it’s the new norm going forward. We’re prepared because we have a great product.”

WATCH: Software is a good small cap play because earnings are more recurring, says Julie Biel

Workday stock gains as software provider widens 2027 margin target

Credit: Source link

ShareTweetSendSharePin
Previous Post

Get tickets for UFC 309 at MSG: Date and fight card

Next Post

How to watch, stream week four of the NFL preseason football games live online free without cable: Fox, CBS, NBC, ESPN

Related Posts

‘More restrictive policy’ may still be needed
News

‘More restrictive policy’ may still be needed

August 23, 2024
Trump DJT stock could be sold within weeks
News

Trump DJT stock could be sold within weeks

August 23, 2024
Nestle CEO replacement not such a bad thing for investors: Analyst
News

Nestle CEO replacement not such a bad thing for investors: Analyst

August 23, 2024
Japan’s yen has seen wild swings this year — is it still a safe-haven asset?
News

Japan’s yen has seen wild swings this year — is it still a safe-haven asset?

August 23, 2024
Canadian rail lockout leaves billions in U.S. trade stranded
News

Canadian rail lockout leaves billions in U.S. trade stranded

August 23, 2024
A robot that gives massages — this is what it looks and feels like
News

A robot that gives massages — this is what it looks and feels like

August 23, 2024
Next Post
How to watch, stream week four of the NFL preseason football games live online free without cable: Fox, CBS, NBC, ESPN

How to watch, stream week four of the NFL preseason football games live online free without cable: Fox, CBS, NBC, ESPN

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What's New Here!

Caeleb Dressel finishes sixth in 50-meter freestyle shocker

Caeleb Dressel finishes sixth in 50-meter freestyle shocker

August 2, 2024
New Food and Beverage Product Launches, July 22 – 26

New Food and Beverage Product Launches, July 22 – 26

July 26, 2024
Quarterback Chad Kelly reinstated by CFL on a ‘last-chance’ agreement

Quarterback Chad Kelly reinstated by CFL on a ‘last-chance’ agreement

August 19, 2024
Kiss Cam proposal gone wrong at Chargers-Rams game leaves fans questioning if it’s real

Kiss Cam proposal gone wrong at Chargers-Rams game leaves fans questioning if it’s real

August 19, 2024
CrowdStrike CEO says 97% of Windows sensors back online after outage

CrowdStrike CEO says 97% of Windows sensors back online after outage

July 26, 2024
Levi Jung-Ruivivar’s run at 2024 Olympics nearly ends with health scare

Levi Jung-Ruivivar’s run at 2024 Olympics nearly ends with health scare

July 26, 2024
Bear market is likely coming in 2025, warns veteran investor David Roche

Bear market is likely coming in 2025, warns veteran investor David Roche

August 12, 2024

About

World Tribune is an online news portal that shares the latest news on world, business, health, tech, sports, and related topics.

Follow us

Recent Posts

  • How to watch, stream week four of the NFL preseason football games live online free without cable: Fox, CBS, NBC, ESPN
  • Workday stock gains as software provider widens 2027 margin target
  • Get tickets for UFC 309 at MSG: Date and fight card
  • Fusion Health rolls out EHR system for Ohio Department of Youth Services

Newslatter

Loading
  • Submit Your Content
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2024 World Tribune - All Rights Reserved!

No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food

© 2024 World Tribune - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In