Market Overview

Workday Still On Track For Potential Re-Acceleration

Workday Still On Track For Potential Re-Acceleration

On Wednesday after the market close, Workday Inc (NYSE: WDAY) reported slightly weak earnings and forecasts, but displayed strong revenues relative to analyst estimates.

D.A. Davidson's Take

"While WDAY posted a positive operating margin, EPS was negatively impacted by a ~$15 million charge associated with a private company investment write-off," stated Jack Andrews, D.A. Davidson analyst. As a result of Andrews' positive assessment, D.A. Davidson maintained Workday's Buy rating and raised the price target from $99.00 to $107.00 price target.

Related Link: Workday's Q2 Nothing To Complain About; Canaccord's Price Target Raised To $98

According to Andrews, Workday's FY16Q2 was the second strongest quarter in company history, while its EMEA division added a record number of customers.

In addition, Workday Planning experienced "higher-than-expected" demand ahead of its release in late September, stated the analyst. The product has over 50 customers, beating expectations.

At time of writing, Workday traded at $84.92, up 6.62 percent on Thursday.

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