Earnings Recap – November 19th
Workday topped earnings and revenue estimates in their earnings report for the third quarter. Earnings per share was $1.10, up 28 percent from last year, and revenue rose by 20 percent to $1.33 billion, but this included acquisitions. The reason why this is brought up is because Workday also announced that they bought Vndly for $510 million, which added to the overall revenue. The bad mark was guidance; in the future years, they provided guidance of 20 percent subscription revenue growth, which was a disappointment for investors as they expected the market to be higher. The stock’s performance on Friday showed that investors believed that this quarter wasn’t good enough for the company.
Williams-Sonoma, the home product retailer, reported third-quarter earnings on Friday. Earnings per share was $3.32, beating expectations of $3.13, and revenue of $2.05 billion, beating estimates of $1.98 billion. They raised guidance, too, with the CEO saying that their in-house and online parts of the company mixed with macroeconomic trends in the United States look to benefit them in the coming quarters. Analysts did note that investors had heightened expectations for Williams-Sonoma’s earnings, and those weren’t able to be met, leading to a fall in share price.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.