Diamonds and Dogs

12/2/16

Five Below (FIVE) is up $5 in the last two days. The discount retail store is up 11% today after beating earnings estimates as revenue rose 17.6% to $200 million.  Management is excited about the holiday season, as they believe they are well-positioned to wow their customers with their compelling holiday assortment accompanied by exciting marketing plans, including their new and expanded TV campaign. Time will tell.

Workday (WDAY) may not be working so well.  The maker of human resources software is down 15% following earnings last night. The company reported a loss of 57 cents per share, 3 cents better than expectations. Revenue of $409.6 million also topped expectations in the period, but looking forward management discussed deal slippage on their conference call with a handful of large deals with multinationals getting delayed. The company also guided for 30% sub rev growth next year with sub billings growth in the mid 20s (below estimates). Good news for most company, but I guess not for Workday.