Shares of Workday (WDAY) – Get Report Premarket surged Friday after the company announced its second-quarter earnings and subscription revenue outlook ahead of analyst estimates.
The stock rose 7.6% to $265.50 before the opening bell as analysts took a mostly bullish approach in evaluating the Pleasanton, California, enterprise cloud company.
Morgan Stanley analysts maintained their overweight rating as they raised its price target from $305 per share to $310, saying “Workday enters the second half of fiscal 2022 with significant revenue momentum,” Bloomberg reported.
Oppenheimer analysts rated the company outperforming as its price target was raised from $265 to $285, as the strong results and management commentary “suggest demand in both HR and financials is improving.”
BMO Capital Markets reviewed the company’s market performance, but raised its price target for the stock from $260 to $295, as results were solid and the outlook “appears to be moving in the right direction as management improves revenue, margin and free market.” cash flow guidelines increased.”
However, despite positive results in the quarter, the company still has “questions about the sustainability of human capital management (HCM) growth.
Workday reported second quarter earnings of $1.24 per share on revenue of $1.26 billion, up 19% year over year. Analysts expected earnings of 77 cents per share on revenue of $1.24 billion.
For the third quarter, the company expects revenue of between $1.156 billion and $1.158 billion, compared to estimates of $1.13 billion.
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