What's Going On With Workday Stock After Earnings?

Workday, Inc. WDAY shares are trading lower Friday after the company reported its first-quarter financial results Thursday and lowered its forward-looking guidance.

The Details:

Workday reported quarterly sales of $1.99 billion which beat the analyst consensus estimate of $1.973 billion and earnings of $1.74 per share. However, the company lowered its forward guidance and now sees second-quarter subscription revenue of $1.895 billion and fiscal-year subscription revenue of between $7.7 billion and $7.725 billion.

Several analysts cut their forecasts for the stock following the print: 

• Goldman Sachs analyst Kash Rangan maintained a Buy rating and lowered the price target from $310 to $300.
• Morgan Stanley analyst Keith Weiss maintained Workday with an Overweight and lowered the price target from $330 to $325.
• Stifel analyst maintained its Hold rating and lowered the price target from $290 to $250.
• Canaccord Genuity maintained Workday as a Buy and lowered the price target from $305 to $270.
• DA Davidson analyst Gil Luria maintained a Neutral rating and lowered the price target from $300 to $255.
• TD Cowen analyst Derrick Wood maintained Workday with a Buy and lowered the price target from $330 to $290.

Workday shares are falling on heavy trading volume as investors digest the company's reduced forward guidance. According to data from Benzinga Pro, more than 4.8 million shares have already been traded in the session. 

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Is WDAY A Good Stock To Buy?

Wall Street analysts view Workday on the whole as a Buy, given the history of coverage over the past three months. Jason Celino from Keybanc in Workday is the most bearish, expecting a 16.67% fall in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Workday fell 25.15%, which indicates that opinion soured on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 18.17% over the past year.

A complete overview of how Wall Street views individual stocks is available here, while real time updates on the latest analyst actions will be delivered via Benzinga PRO. Try it for free.

WDAY Price Action: According to Benzinga Pro, Workday shares are down 13% at $226.97 at the time of publication Friday.

Image: Courtesy of Workday, Inc.