Dayforce Inc Stumbles Amid Positive Earnings, Analysts Remain Hopeful
Dayforce Inc (DAY), with a market capitalization of $9.4 billion, operates as a global leader in human capital management (HCM) software. Based in Minneapolis, Minnesota, the company offers the Dayforce platform, a comprehensive cloud-based HCM solution that encompasses global human resources (HR), payroll and tax management, workforce oversight, benefits administration, and talent intelligence.
Typically categorized as “mid-cap stocks,” companies valued under $10 billion, Dayforce fits neatly within this designation. Additionally, it provides offerings such as Powerpay, a cloud HR and payroll solution tailored for the Canadian small business sector, along with Dayforce Workforce Management, Dayforce Human Resources, and Dayforce Wallet.
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Despite its significant presence, Dayforce has seen a decline of 28.3% from its 52-week peak of $82.69. Over the past three months, shares have fallen by 16.9%, trailing the iShares U.S. Technology ETF (IYW), which experienced a 10.5% drop.
In a longer view, Dayforce’s stock has decreased by 3.9% over the past six months, while IYW dipped by 4.2%. The past year has been even tougher, as Dayforce shares contracted by 8.3%, compared to IYW’s positive return of 6.2% during the same period.
Since late December 2024, DAY’s stock has been below its 50-day moving average, and it fell below its 200-day moving average starting in late February.
On February 5, Dayforce reported fourth-quarter 2024 results that exceeded expectations. The company delivered an adjusted EPS of $0.60, surpassing the consensus estimate of $0.46. Revenue also outperformed, reaching $465.2 million against forecasts of $455.2 million. However, the revenue guidance for the upcoming quarter is set at $424 million, which is below analysts’ predictions. For the full year 2025, Dayforce anticipates revenue between $1.74 billion and $1.76 billion.
In comparison, rival Alkami Technology, Inc. (ALKT) has struggled relative to Dayforce over the past six months, experiencing a decline of 15.9%, though ALKT has seen a 15.9% increase over the last 52 weeks, outperforming Dayforce.
Despite Dayforce’s recent struggles compared to its industry peers, analysts hold a cautiously optimistic view of the company’s future. The stock has a consensus rating of “Moderate Buy” among 19 analysts following it. Currently, DAY is trading below the average price target of $80.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
