Why JMP Securities Remains Bullish On Workday Ahead Of Earnings

Patrick Walravens of JMP Securities on Monday commented in a note that Workday Inc WDAY will report positive fourth-quarter results on February 25.

"Our checks remain preliminary, but at this point we have 12 data points, eight of which are positive, and seem to suggest our F4Q billings growth estimate of 59 percent year over year versus estimated consensus of 58 percent and implied guidance of 57 to 59 percent," Walravens wrote.

The analyst estimates Workday will report a non-GAAP earnings per share of ($0.05) on revenue of $221.9 million, up 56 percent year-over-year and for billings to total $323.9 million.

Looking forward to fiscal 2016, Walravens is projecting the company will report a non-GAAP earning per share of ($0.22) on revenue of $1.12 billion and for fiscal 2017 non-GAAP earnings per share to be $0.07 on revenue of $1.5945 billion.

Share are Market Outperform rated with a $116 price target.