Workday to benefit from continued reopening with Q4 on tap: Monness Crespi Hardt
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Workday (NASDAQ:WDAY) is slated to reported fourth-quarter earnings after the close of trading and investment firm Monness, Crespi, Hardt believes the human resources software provider could benefit from the continued reopening of the global economy post-pandemic.
Analyst Brian White, who rates Workday buy with a $320 price target, noted the company now has a "stronger platform of solutions" than it did earlier and could also capitalize on the digital transformation and long-term shift of workloads moving to the cloud.
"Workdayâs financial performance was hindered by the COVID-19 crisis; however, we expect the company to benefit from this economic recovery and capitalize on accelerated digital modernization efforts," White explained.
The analyst estimates that Workday will generate $1.364 billion in revenue and earn 74 cents a share, compared to Wall Street consensus of $1.355 billion and 71 cents per share. 
The analyst added that the low point for Workday was 15% year-over-year growth in the first-quarter of fiscal 2022 and this quarter should see 21% growth. 
Workday shares were up 0.5% in mid-day trading to $226.36 in Monday.
In addition, White said that subscription revenue should come in at $1.219 billion with professional services revenue at $145.2 million, up 16% year-over-year.
The analyst also noted this will be the first quarter with Barbara Larson as the company's Chief Financial Officer and there should be an update on the VNDLY acquisition, which was announced in November. 
"Given VNDLYâs focus on non-employee workers, we believe the company complements Workdayâs platform well," White explained.
Earlier this month, investment firm said Workday was part of the "next leg of growth" for human capital software.