tiprankstipranks
Workday Working Towards Solid Growth; Street Positive
Stock Analysis & Ideas

Workday Working Towards Solid Growth; Street Positive

Workday (WDAY) provides software solutions for financial management and human resource domains. Its cloud-based platform brings finance and HR integrated systems that help organizations generate analytical insights and make informed decisions.

On November 18, the company released its Q3 of fiscal 2022 results, which were quite impressive. They included a 20% year-over-year revenue jump and a 28% increase in earnings per share from the same quarter last year.

Expert Highlights Strong Points

Solid adoption of its subscription-based software solutions drove the top line in the quarter. Needham analyst Scott Berg noted that the guidance of 20% subscription growth in FY23 was a “key 3QF22 highlight.”

Berg further commented that Workday’s diverse product portfolio continued to bring in a steady flow of customers. Additionally, the company is expanding its operations. Total global headcount reached 14,200 during the quarter, upon the addition of 800 new employees.

The company’s strong international footprint is also bringing in big revenue numbers, according to the analyst. Revenues from abroad climbed 23% year-over-year and made up about 25% of total revenues. Success in the UK, Spain, and Switzerland led to a strong quarter for the EMEA region as a whole.

Moreover, the analyst was encouraged by Workday’s impending $510 million acquisition of cloud-based external workforce and vendor management technology provider VNDLY, which was announced simultaneously with the Q3 print. “We like the VNDLY acquisition as it should drive relatively easy sales into the base but could also drive incremental Adaptive Workforce Planning use,” commented Berg.

Experts’ Opinion on Workday

With his observations, Berg reiterated a Buy rating on the Workday stock and raised his price target to $360 from $310.

Turning to Wall Street, the analyst consensus also has a strongly optimistic stance towards the company, with a Strong Buy rating based on 25 Buys and 2 Holds. The average Workday price target of $334 holds an upside potential of 16.54%.

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclosure: At the time of publication, Chandrima Sanyal did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles