Online payroll and human resource software provider Dayforce (NYSE:DAY) will be reporting results tomorrow morning. Here’s what to look for.
Dayforce beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $440 million, up 16.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations.
Is Dayforce a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Dayforce’s revenue to grow 13.9% year on year to $455.1 million, slowing from the 18.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dayforce has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.
With Dayforce being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for finance and HR software stocks. However, there has been positive investor sentiment in the segment, with share prices up 3.4% on average over the last month. Dayforce is down 3.3% during the same time and is heading into earnings with an average analyst price target of $83.17 (compared to the current share price of $71.28).
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