Workday Shares Rise After 3Q Results Soothe Analysts
November 30 2022 - 12:13PM
Dow Jones News
By Dean Seal
Shares of Workday Inc. rose 12% to $160.44 Wednesday as Wall
Street analysts reacted positively to the company's performance in
the third quarter despite strengthening macroeconomic
headwinds.
The company said after the bell Tuesday that its top line surged
to $1.60 billion from $1.33 billion a year ago, reflecting strong
continued demand for its enterprise cloud applications for finance
and human resources.
JP Morgan analysts said in a note that the results demonstrate
"relative resilience and stability in a tough macro environment,"
noting that finance and HR solutions remain a high priority in the
current labor market.
The results show Workday selling back to its own customers, who
are continuing to consolidate on the platform, according to DA
Davidson analysts Robert Simmons and Lucky Schreiner.
"Overall, the customer base motion and medium enterprise are
driving Workday's ability to maintain healthy growth as the economy
continues to be uneven," the DA Davidson analysts said in a note
Wednesday.
Workday also announced Tuesday that its directors have approved
a share repurchase program with an authorization of up to $500
million, with the hope of reducing the impact of future share
dilution from employee stock issuances.
Analysts at Mizuho Securities view the buyback program
positively, saying in a note that it demonstrates management's
confidence in the business and validates the view that Workday's
shares are currently undervalued.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
November 30, 2022 11:58 ET (16:58 GMT)
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