Workday, Inc. ($WDAY) Stock | Shares Gap Up On Earnings Beating Analyst Expectations


Workday, Inc. (NASDAQ: WDAY)



Workday, Inc. (WDAY), a cloud applications for finance and human resources on Monday reported their fourth quarter and full year fiscal 2016 financial results. Workday reported fourth quarter earnings of a $0.01 loss per share which beat analyst expectations of a loss of $0.05 per share. Workday reported fourth quarter revenues of $323.43 million which beat analyst expectations of $319.63 million.

Workday, Inc. CEO’s Comments

“We ended FY16 on a high note with a very strong fourth quarter across product lines and around the world. Demand for our Financial Management and HCM products continues to rise, as do our competitive win rates,” said Aneel Bhusri, co-founder and CEO, Workday. “The year ahead brings us an expanded addressable market with the delivery of Planning, Learning Management and Student applications that allow customers to drive employee engagement and productivity in new and transformative ways.”  Market Wired

Workday, Inc. CFO Comments

“Workday finished a very strong fiscal 2016 with a great fourth quarter. Total revenue for the year increased 48% to $1.16 billion, and we generated nearly $260 million in operating cash flows,” said Mark Peek, co-president and chief financial officer, Workday. “Looking ahead to our fiscal 2017, we are increasing our billings guidance for the first quarter from $350 million to $360 to $365 million. Billings for fiscal 2017 are expected to be between $1.855 and $1.875 billion. For the first quarter, we expect subscription revenue of $277 to $278 million and total revenue of $337 to $339 million. Subscription revenue for the year is expected to be between $1.275 and $1.285 billion, and total revenue between $1.540 and $1.550 billion.”  Market Wired

WDAY Technical Analysis

WDAY Chart

WDAY gapped up in price yesterday to $65.40, up from the prior day’s close of $60.45, which is a 5% increase in price.Taking a look at the daily chart we can see that the last time WDAY traded above this price level was on January 26th when it traded at $66.65. Taking a closer look at the daily chart we can see that WDAY has been rebounding off of its 52 week low price of $47.32, which was reached on February 9th. WDAY has a float of 112.98 million shares and is trading 5 times the normal daily trading volume. WDAY reached pre market highs of $65.87, but gave back $0.47 at the open, or equivalent to 1%. For trading purposes, my entry point would have been $65.50 looking for a run to $67. My stop loss would have been $65.25, fearing anything below that and the stock would start to fill in the gap up.

Company Profile

Workday, Inc. provides enterprise cloud applications for finance and human resources in the United States and internationally. It offers applications for customers to manage critical business functions that enable them to optimize their financial and human capital resources. The company provides Workday Human Capital Management application that includes global human resources management comprising workforce lifecycle management, organization management, compensation, absence, and employee benefits administration; and global talent management consisting of goal management, performance management, succession planning, and career and development planning, as well as project and work management designed to enable organizations to create and manage and track initiatives, build project plans, and utilize project breakdown structures that include phases, tasks, and milestones. It also offers Workday Payroll, a payroll application designed to address the enterprise payroll needs; and Workday Financial Management tools that provide the core finance functions of general ledger, global accounting, revenue management, accounts payable, employee expense management, and accounts receivable, along with tools to help organizations manage their cash, assets, contracts, grants, expenses, procurement, and support their financial reporting requirements, as well as offer management reporting and analysis in real time. In addition, the company provides Workday Insight Applications that leverage advanced data science and machine learning methodologies to help customers make smarter financial and workforce decisions. It serves technology, financial services, business services, healthcare and life sciences, manufacturing, consumer and retail, and education and government industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was founded in 2005 and is headquartered in Pleasanton, California. (MarketWatch)