Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Workday Inc WDAY shares are trading lower by $10 at $82.49 in Wednesday's session. Despite posting better-than-expected Q1 EPS, along with higher revenue, the company issued lowered guidance for FY 2016.
The issue, which was approaching its high for the year ($95.17), reaching $93.92 in Tuesday's session, is much closer to its yearly low made in January at $76.36.
The weak guidance did not dissuade JMP Securities to abandon the issue as the firm has maintained its Market Outperform rating and price target of $116.
After a $7.50 decline in premarket trading, it managed a brief pop to $85 before sellers flooded the issue once again. So far, it has reached $81.14 and is attempting to reclaim the $82 handle. That level coincides with its April 1 low at $81.39.
Wednesday's rout is taking place on heavier than average volume, as it has traded 5.8M shares compared to 20 day average of 1.6M with four hours remaining in the session.
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