Online payroll and human resource software provider Dayforce (NYSE: DAY) will be reporting results tomorrow morning. Here’s what investors should know.
Dayforce beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $465.2 million, up 16.4% year on year. It was a weaker quarter for the company, with full-year guidance of slowing revenue growth 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.
This quarter, analysts are expecting Dayforce’s revenue to grow 10.5% year on year to $476.8 million, slowing from the 16.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.54 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 1.8% on average.
Looking at Dayforce’s peers in the HR software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Paylocity delivered year-on-year revenue growth of 13.3%, beating analysts’ expectations by 2.9%, and Paychex reported revenues up 4.8%, in line with consensus estimates. Paylocity traded down 3.6% following the results while Paychex was up 5.4%.
Read our full analysis of Paylocity’s results here and Paychex’s results here.
There has been positive sentiment among investors in the HR software segment, with share prices up 15% on average over the last month. Dayforce is up 14% during the same time and is heading into earnings with an average analyst price target of $71.71 (compared to the current share price of $58.40).
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