Workday shares slipped as much as 11% in extended trading Tuesday after the human resources and finance software maker issued a quarterly forecast that came in below Wall Street projections.
For the fiscal fourth quarter, Workday called for an adjusted operating margin of 25% on $2.03 billion in subscription revenue. Analysts polled by StreetAccount were looking for a 25.5% margin and $2.04 billion in subscription revenue.
Here’s how the company performed during the fiscal third quarter compared with the consensus among analysts surveyed by LSEG:
- Earnings per share: $1.89 adjusted vs. $1.76 expected
- Revenue: $2.16 billion vs. $2.13 billion expected
Workday’s total revenue grew about 16% year over year in the quarter ended Oct. 31, according to a statement. Subscription revenue totaled $1.96 billion, up around 16%, consistent with the $1.96 billion consensus among analysts surveyed by StreetAccount.
The company reported net income of $193 million or 72 cents per share, up $114 million or 43 cents per …