Will Workday (WDAY) Beat Estimates Again in Its Next Earnings Report?

Core Viewpoint - Workday is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates consistently in recent quarters [1][5]. Earnings Performance - In the last reported quarter, Workday achieved earnings of $1.92 per share, exceeding the Zacks Consensus Estimate of $1.75 per share, resulting in a surprise of 9.71% [2]. - In the previous quarter, the company was expected to report earnings of $1.72 per share but delivered $1.89 per share, leading to a surprise of 9.88% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Workday, with a positive Earnings ESP of +2.24%, indicating increased analyst optimism regarding its near-term earnings potential [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [6][8]. Earnings ESP Explanation - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate than earlier predictions [7]. - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9]. Importance of Earnings ESP - Monitoring the Earnings ESP is crucial for assessing the likelihood of a stock beating consensus estimates, as many companies may beat estimates without significant stock movement [10].