For the fiscal 2021 first quarter ended April 30, Workday’s revenue jumped 23% from a year earlier to $1.02 billion, beating the FactSet analyst consensus of $1 billion.
Workday had a loss of $158 million, or 68 cents a share, widening from a loss of $116 million, or 52 cents, in the year-earlier quarter.
Adjusted earnings per share firmed to 44 cents from 43 cents a year earlier. Analysts forecast 49 cents for the latest quarter.
As for the share-price target increases, Bank of America Securities went to $200 from $170, Oppenheimer to $190 from $165, Piper Sandler to $181 from $150, Jefferies to $180 from $146 and Cowen to $175 from $160.
Oppenheimer analyst Brian Schwartz said that while the macro environment remains uncertain for Workday in light of the coronavirus pandemic, it has the ability to utilize its installed base to spark growth, The Fly reports.
Workday’s higher-margin outlook illustrates the durability of its business model, he said. Workday’s growth story is in an early stage, Schwartz said.
And the pandemic can actually serve as a stimulant for digital transformation among companies, bringing them to Workday, he said.
Workday shares at last check traded at $186.48, up 9.5%, while Salesforce advanced 4.5% to $184.58.
Workday stock has climbed 9% over the past three months, compared with a 7% gain for Salesforce.