Workday, Inc. shares rose about 3% on Wednesday ahead of its second quarter financial results. While the results beat expectations, management’s guidance came in lower than expected, which could sour investor sentiment on the stock. The positive news is that Workday stock broke out from an ascending triangle chart pattern, which could suggest upside potential over the coming days as long as the price holds key support levels.
Second quarter revenue jumped 40.6% to $525.3 million – beating consensus estimates by $17.9 million – while earnings per share of 24 cents beat consensus estimates by nine cents per share. Management expects third quarter revenue to be between $450 million and $452 million, which is lower than the consensus estimates calling for $521.9 million, while the company’s FY2018 outlook called for revenue of $1.75 billion versus a consensus of $2.05 billion. (See also: Workday Breaks Out as Analyst Raises Price Target.)
Workday shares broke out ahead of second quarter earnings, but traders will be watching these key levels. …read more
Read more here: Workday Stock Breaks Out From Ascending Triangle