Yahoo Finance Will Top-Line Expansion Aid Workday's (WDAY) Q4 Earnings?
Workday, Inc. WDAY is scheduled to report fourth-quarter fiscal 2023 results on Feb 27, after the market closes. In the last reported quarter, the company recorded an earnings surprise of 17.86%. It pulled off a trailing four-quarter earnings surprise of 7.32%, on average.
The Pleasanton, CA-based enterprise’s approach of continuous innovation and healthy demand for its applications for finance and human resources are likely to have resulted in year-over-year higher revenue.
Factors at Play
In the to-be-reported quarter, Workday continued to gain traction with its newly-introduced AI/ML-based demand forecasting that will enrich retailers with data-driven insights and optimize business decisions. This will help retailers to ensure cost effectiveness, better manage supply chain issues and also help them adapt to dynamic business conditions. The company is witnessing a high demand for its finance and human resource solutions as more than 50% of the retail organizations in the Fortune 500 have selected Workday. This is likely to have led to higher revenues in the fourth quarter.
In the fiscal fourth quarter, Workday was selected by Gallaudet University to achieve its digital transformation goals. The Washington-based University enrolls around 1,600 students looking to utilize Workday's solutions for financial management and human resource domains to automate and streamline financial operations related to costs, transactions and revenues, as well as HR procedures like payroll, time tracking, and expenses. Implementing Workday’s innovative framework will optimize the university’s overall operations. This is likely to have had a positive impact on the company’s fourth-quarter meanings.
In the said quarter, Tecsys, an industry leader in supply chain solutions for health systems and hospitals, opted for Workday Certified Integration status. Workday Supply Chain Management for Healthcare optimizes various operations of healthcare organizations and provides real-time insights to enhance efficiency. Tecsys’s integration with Workday SCM for health care aims to streamline the complex and dynamic process of the healthcare system, maximize the quality of patient care and mitigate supply chain-related cost and uncertainty. This indicates the strength of Workday’s strong and dynamic portfolio and is likely to have improved the company’s earning prospects in the fourth quarter.
For the January quarter, the Zacks Consensus Estimate for revenues is pegged at $1,636 million, which indicates growth from the year-ago quarter’s reported figure of $1,376 million. The consensus estimate for adjusted earnings per share is pegged at 89 cents, suggesting an increase from 78 cents reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for Workday this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 89 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Workday, Inc. Price and EPS Surprise
Workday, Inc. price-eps-surprise | Workday, Inc. Quote
Zacks Rank: Workday currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Cambium Networks Corporation CMBM is set to release quarterly numbers on Feb 16. It has an Earnings ESP of +2.46% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Splunk Inc. SPLK is +0.39% and it carries a Zacks Rank of 2 (Buy). The company is set to report quarterly numbers on Mar 1.
The Earnings ESP for InterDigital, Inc. IDCC is +32.06% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Feb 15.
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InterDigital, Inc. (IDCC) : Free Stock Analysis Report
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Cambium Networks Corporation (CMBM) : Free Stock Analysis Report
