Dayforce (DAY) to Report Earnings Tomorrow: What to Expect

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Online payroll and human resources software provider Dayforce (NYSE:DAY) is set to report earnings tomorrow morning. Here’s what to watch.

Dayforce beat analyst revenue expectations by 1.3% in the latest quarter, reporting revenue of $431.5 million, up 16.4% year over year. It was a solid quarter for the company, with accelerating customer growth and significant improvement in gross margin. The company added 182 customers, bringing its total to 6,575.

Is Dayforce a buy or sell on earnings? Read our full analysis here, it’s free.

Analysts are expecting Dayforce revenue to rise 14.1% year over year for the quarter to $417.4 million, down from a 21.5% increase in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.

Most analysts covering the company have reaffirmed their estimates over the past 30 days, suggesting they expect the company to maintain its earnings trajectory. Dayforce has a history of beating Wall Street expectations, beating revenue estimates by an average of 2.2% each time over the past two years.

Looking at Dayforce’s competitors in the financial and HR software space, only Paychex has posted results to date. It met analyst revenue estimates, posting a 5.3% year-over-year sales increase.

Read our full analysis of Paychex’s financial results here.

Investors in the financial and HR software space are in positive spirits, with shares up an average of 2.6% over the past month. Dayforce is up 6.4% in the same time frame and is on track for profit with an average analyst price target of $85.80 (compared to the current share price of $53.53).

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