NEW YORK (TheStreet) -- Workday (WDAY - Get Report) gave long investors a reason to smile after returning to the grind post long weekend. The cloud company, focused on software for human resources and finance, reported a lower-than-anticipated loss on better-than-expected revenue Tuesday.
$WDAY don't they always beat :) I mean lose less? Old Turkey (@Partridge) May. 27 at 04:21 PM
Shares rose more than 5% in extended trading to $86.60. They had climbed nearly 5% during the trading day.
But many investors on StockTwits.com said that the results didn't warrant share gains. A majority of the crowd, 54%, remained bearish on the company, according to StockTwits' analytics. And many investors argued that Workday's market cap of $15.11 billion is too rich for a company without actual earnings.
$WDAY Losses WIDENED!!! (GAAP Loss), Don't bother with this NonGAAP nonsense, Stock should be trading DOWN!!!? Al (@alkin) May. 27 at 04:24 PM
Workday sales rose 74% to $159.7 million, edging past consensus calls for $152.42 million. The company reported an EPS loss of $0.13,excluding share-based compensation, payroll taxes, interest expenses and other items. That loss was lower than the same period last year and beat estimates for a $0.15 loss, according to the Analyst Ratings Network.
Management's outlook also topped Wall Street expectations. The company guided to second quarter sales of between $173 million and $178 million. Management expects full year revenues to come in between $730 million and $750 million. The midpoint of that range beat consensus' call for $735.36 million.
$WDAY Billings growth of 94% way higher than cons expectations of +54% vs 78% growth in F4Q14? BeatTheStreet (@BeatShort) May. 27 at 04:57 PM
Bullish investors called for the stock to hit $100 Wednesday as short investors covered rather than risk more losses from the positive earnings report. Short interest in the stock is 9.68% of float, according to shortsqueeze.com.
But many short sellers and Workday bears on StockTwits.com remained unconvinced by the earnings report.
$WDAY Expected to earn .09 in '16, (yeah, I won't hold my breath), so PE is, what 860 times ... That's INSANE!!!!!!!? Al (@alkin) May. 27 at 04:33 PM
At the time of publication the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.