Earnings To Watch: Dayforce (DAY) Reports Q3 Results Tomorrow

Human capital management software company Dayforce (NYSE:DAY) will be announcing earnings results this Wednesday afternoon. Here’s what to expect.

Dayforce beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $464.7 million, up 9.8% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations and revenue guidance for next quarter missing analysts’ expectations significantly.

Is Dayforce a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Dayforce’s revenue to grow 9.4% year on year to $481.4 million, slowing from the 16.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.55 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 1.5% on average.

Looking at Dayforce’s peers in the finance and hr software segment, only Paychex has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 16.8%. The stock was down 3.5% on the results.

Investors in the finance and hr software segment have had steady hands going into earnings, with share prices flat over the last month. Dayforce’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $70 (compared to the current share price of $68.39).

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