Workday plunges on 'mixed' Q1 as analysts worry over slowing backlog, delayed deals
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Workday (NASDAQ:WDAY) shares fell sharply on Friday after the back-office software provider posted first-quarter results that missed expectations, and commentary from management prompted several analysts to point out a slowing backlog and delay in deals.
JMP Securities analyst Patrick Walravens called the first-quarter results "mixed," as earnings missed estimates, due to higher interest expense, but revenue was in-line with estimates. 
Walravens, who maintained his market outperform rating on Workday (WDAY) shares, lowered his per-share price target to $210 from $310, adding that the company "indicated that several key opportunities slipped out of the quarter and pushed out to later in the year."
Workday (WDAY) shares fell nearly 9% to $153.13 in premarket trading on Friday.
BMO Capital Markets analyst Daniel Jester kept the firm's outperform rating on Workday (WDAY) shares, but also noted that it is not "immune to moderation," citing the recent period of uncertainty.
"Management sees most deals as delayed, not canceled, and cite improvement in May as supporting evidence," Jester wrote in a note to clients. "Yet with expectations of a tougher economic backdrop emerging, we expect investor skepticism as to the pace of recovery, and increasing focus on the (many) opportunities to expand within the installed base."
Jester tweaked the per-share price target to $239, down from $249 prior to earnings.
KeyBanc Capital Markets analyst Michael Turits noted that even with management being confident that the deals being pushed out can be closed this year, there is a fair amount of "macro uncertainty" and "risk around back office demand" in the current environment. Turits lowered the per-share price target to $207 following the results.
Earlier this month, UBS downgraded Workday (WDAY) shares, noting the potential for a "vulnerability in a downturn."
Analysts have been overly bullish on Workday's stock (WDAY). Before Workday announced its results and its stock dropped, it had an average rating of Buy from Wall Street analysts, and a less enthusiastic
HOLD from Seeking Alpha authors. In contrast, Seeking Alpha's quant system, which consistently beats the market, rated Workday a Hold.