Nomura Workday (WDAY) Earnings Preview

Nomura analyst, Frederick Grieb, published an earnings preview ahead of Workday's Workday (NYSE: WDAY) earnings next week. He is expecting a beat and raise quarter above prior full year guidance of $1.150–1.158bn (+46–47% yoy).

Grieb likes Workday’s product portfolio and business fundamentals, but notes that competition is increasing in the HCM market while the Financials offering is "still a slower burn".

At the analyst day on September 29, management noted that the company is providing more flexibility to customers on billings terms and will accept a lower cash payment up front in lieu of greater discounts. This change in billing terms is likely to be a near term headwind.

Consensus revenue is $303.3M at the high end of the guidance range of $300 - $303. Billings guidance was $310 - $315.

He maintained his Neutral Rating and $90 PT.

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 $82.00 yesterday.

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