NEW YORK (TheStreet) -- Investors may want to keep an eye on shares of Workday (WDAY) in Wednesday's trading session. The stock may be on the move following the loss the company reported in its latest quarterly earnings release after the bell on Tuesday.
For the first quarter, the cloud computing software company posted a loss of 2 cents a share, more than a nickel better than the loss of 8 cents the analysts polled by Thomson Reuters had estimated.
Sales for the first quarter climbed 57% compared with the results a year ago and rose to $251 million. The top line also surpassed the Wall Street consensus estimate of $245 million.
In issuing its second-quarter guidance, the company said it expected its revenue to be in the range of $270 million to $274 million, while analysts projected sales of $272.4 million for the period. And the company's second quarter revenue guidance was in line with Wall Street estimates.
The stock ended the regular session trading session in the green, rising 0.34% for the day, to $92.49 on heavy volume. But following Workday's earnings release, its stock was under pressure in negative territory, plummeting more than 5% to $87.51 in afterhours trading. By 7:29 p.m. EDT the shares had fallen to 85.75, more than 7.29%.
Pleasanton, Calif.-based Workday is a provider of enterprise cloud applications for global human resources and finance. The company provides human capital management, financial management, and analytics applications designed for organizations. The company's apps allow clients to manage critical business functions for their financial and human capital resources.
TheStreet Ratings team rates Workday as a sell with a ratings score of D+. TheStreet Ratings Team has this to say about its recommendation: