Workday Spikes 12% In After-Hours On 2Q Beat

August 28, 2020

1 minute read

Shares of Workday soared 11.9% in the extended trading session on Thursday after the company reported stronger-than-expected 2Q results and raised guidance for fiscal 2021.

WDAY) 2Q revenues climbed 19.6% to $1.06 billion year-over-year and surpassed analysts’ expectations of $1 billion. Its adjusted EPS increased 90.9% to $0.84 year-on-year and beat Street estimates of $0.66.” data-reactid=”13″>Workday’s (WDAY) 2Q revenues climbed 19.6% to $1.06 billion year-over-year and surpassed analysts’ expectations of $1 billion. Its adjusted EPS increased 90.9% to $0.84 year-on-year and beat Street estimates of $0.66.

See WDAY stock analysis on TipRanks).” data-reactid=”14″>The human-resources cloud-software company raised its fiscal 2021 subscription revenue guidance range to $3.73-$3.74 billion from $3.67-$3.69 billion projected earlier. It also revised upward the non-GAAP operating margin outlook for the fiscal year to 18% from 16%. (See WDAY stock analysis on TipRanks).

Mark Murphy increased his price target to $200 from $190 (7.7% downside potential) and maintained a Buy rating. Murphy said that the acceleration in digital transformation due to the pandemic is a "positive tailwind" in the medium to long-term.” data-reactid=”19″>Following the positive results, J.P. Morgan analyst Mark Murphy increased his price target to $200 from $190 (7.7% downside potential) and maintained a Buy rating. Murphy said that the acceleration in digital transformation due to the pandemic is a “positive tailwind” in the medium to long-term.

price target of $195.81 implies downside potential of about 9.6% to current levels.” data-reactid=”20″>Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 11 Buys, 9 Holds, and 1 Sell. With shares up about 32% year-to-date, the average price target of $195.81 implies downside potential of about 9.6% to current levels.