Why did Workday stock lose momentum today? Weak Q1, guidance hits shares
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Workday (NASDAQ:WDAY) shares fell nearly 6% on Friday after the human resources software provider posted first-quarter results that missed expectations, and several analysts expressed concern about 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 6% to close at $158.62 on Friday.
BMO Capital Markets analyst Daniel Jester 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, who rates Workday (WDAY) outperform, 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."
For the period ending April 30, Workday said it earned an adjusted $0.83 per share on $1.43B in sales. Analysts were expecting $0.85 per share in earnings and $1.43B in revenue.
Looking ahead, the company maintained its adjusted operating margin target of 18.5%.
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."