Needham & Company Cuts Price Target on Workday (WDAY) Following 2Q16 Results
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Rating Summary:
36 Buy, 23 Hold, 3 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Needham & Company maintained a Buy rating on Workday (NYSE: WDAY), and cut the price target to $92.00 (from $107.00), following the company's 2Q16 earnings report. WDAY reported revenue of $282.6mm, ahead of the Street's $274.07M. EPS of $0.02 beat the Street's -$0.06 estimate. The company guided 3Q billings, $310-315mm, below consensus estimates of $336mm.
Analyst Scott Berg commented, "Workday reported 2Q financial results above our estimates and in line with our positive checks. However, we expect 3Q billings guidance below consensus estimates on invoicing variances will likely pressure the stock in the near term. But we believe the underlying fundamentals are not only healthy, but improving. Win rates improved in 2Q while Financial pipelines doubled in 90 days from 2Q to 3Q and we expect the company to cross the profitability threshold in FY17 on a permanent basis. We reiterate our Buy rating but reduce our PT from $107 to $92 as we believe the improving overall fundamentals will more than offset the transitory invoicing issue. We would aggressively accumulate shares on any material weakness."
For an analyst ratings summary and ratings history on Workday click here. For more ratings news on Workday click here.
Shares of Workday closed at $72.40 yesterday.
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