Yahoo Finance Dayforce (DAY) Reports Earnings Tomorrow: What To Expect
Online payroll and human resource software provider Dayforce (NYSE:DAY) will be reporting earnings tomorrow morning. Here's what to look for.
Dayforce beat analysts' revenue expectations by 1.3% last quarter, reporting revenues of $431.5 million, up 16.4% year on year. It was a solid quarter for the company, with accelerating customer growth and a significant improvement in its gross margin. It added 182 customers to reach a total of 6,575.
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 14.1% year on year to $417.4 million, slowing from the 21.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dayforce has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.2% 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 5.3%.
Read our full analysis of Paychex's earnings results here.
There has been positive sentiment among investors in the finance and hr software segment, with share prices up 2.6% on average over the last month. Dayforce is up 6.4% during the same time and is heading into earnings with an average analyst price target of $85.8 (compared to the current share price of $53.53).
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