Workday, Palo Alto Deliver for Bulls With Strong Earnings

(Bloomberg) -- Workday Inc. and Palo Alto Networks Inc. delivered strong earnings reports on Thursday, adding to optimism that’s fueled a rebound in momentum stocks this week.

Workday, which makes human resource software, reported third-quarter revenue that beat the highest analyst estimate. Cybersecurity company Palo Alto Networks forecast sales in the current quarter that topped expectations. Workday gained as much as 11 percent in extended trading, while Palo Alto Networks rose 5 percent.

"The enterprise environment is still very healthy," said Daniel Morgan, senior portfolio manager at Synovus Trust Co. in Atlanta. "This is evidence that there’s tremendous strength in cloud software."

Splunk Inc. also projected sales in the fourth quarter that exceeded the estimate. The stock rose 3.9 percent in after-hours trading.

©2018 Bloomberg L.P.