Boston, MA 04/30/2014 (wallstreetpr) – Tuesday was the day for Workday Inc (NYSE:WDAY) as the company’s stocks showed 3.7% hike after the competitor NetSuite announced more than expected earnings. After the mid-session bell on Monday this financial Software developing company reported total net income of 6 cents per share and total revenues of $ 122.96 million. It happened after analysts expected a net income of 2 cents per share, thus this leading company outperformed the market predictions by a fair margin.
On the other hand, TheStreet Ratings team has rated Workday Inc (NYSE:WDAY) as a sellable option. The rating company has given it a score of D+ which doesn’t sound that good. When asked, the team who did this analysis said,” Workday has more weaknesses, than strengths, and this is the reason why we recommend all the investors to sell it with immediate effect. Some of the notable weaknesses of company can be its fluctuating net income, and inconsistent growth. Because of these so many negative points, it is very difficult for all the stock holders to achieve positive results in longer run.”
Analysis done by TheStreet Ratings team
- When compared to the overall software industry, and S&P 500, the net income of company has gone down significantly than that of one year ago. Company has underperformed even when market was doing good. The net income of company went down from $55.98 to $ 30.94 million dollar in one year’s time.
- When talked about EPS, again company has reported a negative progress. Though consensus estimate suggests that coming months will be good for the industry, and the trend that the company has shown in last couple of quarters should reverse.
- Company’s return on equity significantly lesser than the industry’s overall ROE and S&P’s ROE.
On the basis of this analysis how investors respond towards Workday Inc (NYSE:WDAY)’s stock will determine company’s future in coming months.