Beating your earnings on a weekday. Guiding light. Stocks drop on business day.

Working day (WDAY) reported first-quarter earnings on Thursday that topped analyst consensus and revenue was lower in terms of views. The enterprise software maker’s guidance on Workday stock was below expectations.

Pleasanton, California-based Workday reported earnings after the market closed.

In the quarter ending April 30, Workday’s earnings rose 33% to $1.74 per share from a year earlier (adjusted). Revenue rose 18% to $1.99 billion, including acquisitions.

Workday Stocks: Orientation Light

Analysts expected Workday earnings of $1.58 per share on revenue of $1.97 billion. A year earlier, Workday’s earnings were $1.31 per share on sales of $1.68 billion.

On the market today, WDAY shares fell more than 8% to 237.84 in extended trading.

For the current July quarter, the company said it expects subscription revenue of $1.895 billion at midpoint compared to estimates of $1.93 billion.

The company sells human resources management software, such as payroll tools. About 70% of revenue comes from human capital management products. It has also expanded into financial software.

Ahead of Workday’s earnings report, the company’s shares are down 5% in 2024.

According to IBD Stock Checkup, WDAY stock has a Relative Strength Rating of 51 out of a best possible 99. The stock is trading close to its 50-day moving average on weekdays.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and 5G wireless.

YOU MAY LIKE:

IBD Digital: Unlock IBD’s premium stock lists, tools and analysis today

Learn how to time the market with IBD’s ETF market strategy

How to use the 10-week moving average to buy and sell

Receive free IBD newsletters: Market Preparation | Technical report | How to invest

Find winning stocks with MarketSmith pattern recognition and custom screens