Why Workday Shares Are Rising Today

Workday Inc WDAY is trading higher Tuesday after the company reported better-than-expected fourth-quarter fiscal 2022 financial results. 

Workday said quarterly revenue increased 21.6% year-over-year to $1.38 billion, which beat the $1.36 billion estimate. The company reported quarterly earnings of 78 cents per share, which beat the estimate of 71 cents per share. 

"Our exceptional fourth quarter and full-year fiscal 2022 results reflect the broad-based momentum that we see across the business," said Barbara Larson, CFO of Workday. "Our market position has never been stronger, and investing to support long-term growth remains our priority."

Workday raised its full fiscal year 2023 subscription revenue guidance to a range of $5.53 billion to $5.55 billion. The company also raised non-GAAP operating margin guidance to 18.5%.

Analyst Assessment: 

• Keybanc analyst Michael Turits maintained Workday with an Overweight rating and lowered the price target from $345 to $312.
• Barclays maintained Workday with an Overweight rating and raised the price target from $318 to $319.
• Stifel analyst Brad Reback maintained Workday with a Buy rating and lowered the price target from $320 to $300.

Workday is a software company that offers human capital management, financial management and business planning solutions.

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WDAY Price Action: Workday has traded as low as $205.90 and as high as $307.81 over a 52-week period.

The stock was up 8.49% at $248.50 at time of publication.

Photo: courtesy of Workday.