Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Workday Stock Plunges After EPS Miss, Goldman Sachs Sees a 'Great Buying Opportunity'

Stock Markets May 27, 2022 08:02
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Senad Karaahmetovic

Shares of Workday (NASDAQ:WDAY) are down more than 8% in premarket trading Friday after the company reported worse-than-expected adjusted Q1 EPS.

Workday posted Q1 adjusted EPS of 83c, compared to 87c in the year-ago period and below the analyst consensus of 85c per share. Revenue came in at $1.43 billion, up 22% YoY and in line with the analyst estimates. Subscription revenue stood at $1.27 billion, up 23% YoY and in line with the expectations.

Looking ahead, WDAY expects Q2 revenue in the range of $1.35 billion to $1.36 billion, while analysts were looking for $1.35 billion.

For the full year, the software company expects subscription revenue in the range of $5.54 billion to $5.56 billion, up from the previous forecast of $5.53 billion to $5.55 billion, with analysts also expecting $5.55 billion.

“We had a solid start to the year, as organizations across the globe continue to choose Workday as their strategic finance and HR partner,” said CFO Barbara Larson.

Goldman Sachs analyst Kash Rangan lowered the price target to $260.00 per share from $300.00

“Acknowledging the uncertain macroeconomic backdrop head-on will likely serve as a net positive, in our view, as estimates are de-risked and management can execute against a more conservative playbook… We look beyond the near-term noise and see a great buying opportunity for a high-quality franchise. We also note that periods of slower growth tend to last only several months, giving room to the possibility that Workday sees close-rates pick up in 2H,” Rangan told clients.

KeyBanc analyst Michael Turits cut the price target to $207.00 per share from $229.00 after a “modest” beat.

“While mgmt is confident in closing the pushouts this year, we slightly lower our FY23E revs. and model to the low end of guidance given the cRPO miss and macro uncertainty. Lowering PT to $207 given 1Q results and risk around back office demand in a weakening macro, but retain confidence around the relative strength of the business and conviction in multiple LT catalysts in both cloud HCM and Fins as we wrote post a recent NDR,” Turits said in a note.

Workday Stock Plunges After EPS Miss, Goldman Sachs Sees a 'Great Buying Opportunity'
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email