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All in a Leap Year workday’s work, Workday ( WDAY ) late Monday issued its fiscal fourth-quarter earnings that beat Wall Street views, but its Q1 revenue outlook missed forecasts and shares were down in after-hours trading. The company’s CEO, however, said Workday will expand its total addressable market. And the Q4 ended Jan. 31 marked the 13th time in 14 quarters that Workday beat consensus on earnings and revenue since going public in Oct. 2012, priced at 28. But CFO Mark Peek forecast Q1 revenue of $337 million to $339 million, up 35% at the midpoint but below the $343.3 million modeled by analysts polled by Thomson Reuters. Workday stock was down 3% in after-hours trading, after the company released its results. Shares rose 1.7% to 60.46 in Monday’s regular session. Workday stock hit a 39-month low at 47.32 on Feb. 9. The stock climbed over the past two weeks but is still down 24% this year. Investors in software stocks, battered in recent months, had hoped Workday might encourage upward movement in the sector like Salesforce.com ( CRM ) did last week when its stock jumped 11% after its fiscal Q4 earnings and its outlook beat expectations. The enterprise software sector dived Feb. 5 after Big Data developer Tableau Software ( DATA ) issue a disappointing Q4 and gave soft guidance. Tableau crashed 49.5% that day to 41.33 and still has not recovered. “We ended FY16 on a high note with a very strong fourth quarter across product lines and around the world,” Workday CEO Aneel Bhusri said in the earnings release. “Demand for our financial management and HCM (human capital management) products continues to rise, as do our competitive win rates. The year ahead brings us an expanded addressable market with the delivery of Planning, Learning Management and Student applications that allow customers to drive employee engagement and productivity in new and transformative ways.” Big legacy software developer Oracle ( ORCL ) unwittingly might be helping Workday by somewhat reducing its automatic promotional Software as a Service to customers, D.A. Davidson analyst Jack Andrews wrote in a research note before Workday’s earnings release. Workday’s helps companies manage their most important assets: people, in the form of the HCM applications, and money, with financial management software. The company posted a per-share loss minus items of a penny in Q4, better than its 6-cent loss in the year-earlier quarter, on revenue of $323.4 million, up 43%. Workday had guided Q4 to revenue of $317 million to $320 million. Analysts polled by Thomson Reuters had modeled $320.3 million when Q3 results were reported in November, but then revised it down to $319.6 million. Analysts had expected an adjusted loss per share of 5 cents. Scalper1 News
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