NEW YORK (TheStreet) -- Shares of Workday Inc (WDAY) were tumbling, down 4.53% to $88 in after-hours trading Tuesday, following the enterprise cloud app provider's first quarter financial results, released after the closing bell.
The stock fell into the red in extended trading, despite the company reporting better than expected first quarter earnings.
For the first quarter, the company posted a loss of 2 cents per share, while sales rose 57% from a year ago to $251 million.
Wall Street projected a loss of 8 cents a share on revenue of $245 million for the quarter, according to analysts surveyed by Thomson Reuters.
In the same quarter a year ago, Workday posted a loss of 13 cents per share on revenue of $160 million.
"They are doing incredibly well, moving aggressively into the vertical for human capital management and also getting into the financial side," Cramer said in a video.
He added that Workday should be strong and offer positive pin action for other cloud stocks when it reports its earnings results.
Shares finished the regular session up 0.34% to $92.49 today.
About 3.51 million shares have exchanged hands as of 4:23 p.m. ET today, compared to its average trading volume of about 1.36 million shares a day.
Pleasanton, Calif.-based Workday is a provider of enterprise cloud applications for global human resources and finance. The company delivers human capital management, financial management, and analytics applications designed for organizations.
The company provides its customers the applications to manage critical business functions for their financial and human capital resources.
Separately, TheStreet Ratings team rates WORKDAY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate WORKDAY INC (WDAY) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."
You can view the full analysis from the report here: WDAY Ratings Report