Market Overview

Workday's Guidance May Be Conservative

Workday's Guidance May Be Conservative
NOW Is The Time; Analyst Explains Why ServiceNow Is Still A Buy
The Week Ahead: New IPOs, Bank Earnings, And Some Notable FDA Actions

Workday Inc (NYSE: WDAY) reported strong quarterly results, with billings ahead of expectations. Given these results, the company’s guidance appears “conservative on most metrics,” BMO Capital Markets’ Keith Bachman said in a report. He maintained a Market Perform rating on Workday, while raising the price target from $90 to $93.

Workday reported its quarterly billings at $431 million, beating the consensus estimate of $420 million. Management raised the higher-end of its billings guidance range for FY17 by merely $5 million, which is less than the billings beat of $11 million in the quarter, analyst Bachman noted.

Key Takeaways

“Commentary around financial products sounds promising, consistent with our views,” Bachman wrote. He commented that although Workday had reported a beat on operating profit, this was less significant than the revenue and billings growth recorded by the company for the quarter.

Related Link: BTIG Says Workday "Working It," Raises Price Target

The analyst raised the revenue and EPS estimates for FY18 from $2,058 million to $2,068 million and from $0.40 to $0.45, respectively. The FCF per share estimate for FY18 has been revised upwards from $1.01 to $1.13.

The rating has been maintained because the stock does not appear “compelling at current valuations,” Bachman added.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for WDAY

Nov 2017BarclaysMaintainsEqual-Weight
Nov 2017UBSAssumesBuySell
Oct 2017GuggenheimInitiates Coverage OnNeutral

View More Analyst Ratings for WDAY
View the Latest Analyst Ratings

Posted-In: BMO Capital Markets Keith BachmanAnalyst Color Price Target Reiteration Analyst Ratings Tech Best of Benzinga


Related Articles (WDAY)

View Comments and Join the Discussion!

Partner Center