Dayforce Inc. Set to Report Q4 Earnings: Analysts Predict Mixed Results
Company Overview: Dayforce Inc. (DAY), headquartered in Minneapolis, Minnesota, is a leader in human capital management software. The company boasts a market cap of $11.1 billion, providing cloud-based solutions for human resources, payroll, and workforce management. The upcoming Q4 earnings report is scheduled for Wednesday, February 5, before the market opens.
Q4 Earnings Expectations: Analysts forecast that Dayforce will report a profit of $0.27 per share for Q4, which is a 29% decline from the $0.38 per share reported during the same quarter last year. In the past four quarters, the company has beaten Wall Street’s earnings expectations twice but missed them on two occasions.
Future Projections: Looking ahead to fiscal 2024, analysts project an adjusted EPS of $1.06 for Dayforce, marking a significant increase of 63.1% compared to $0.65 in fiscal 2023. The next year, fiscal 2025, is expected to see further growth, with adjusted EPS anticipated to rise by 33% to $1.41.
Stock Performance: DAY shares have increased by 7.8% over the last year. However, this underperforms compared to the S&P 500 Index, which gained 22%, and the Technology Select Sector SPDR Fund, with an 18.2% return year-to-date.
Challenges Facing Dayforce: Despite a robust product lineup, Dayforce’s growth has been hindered by slow client acquisition, difficulties in scaling its solutions, rising competition in the HR software sector, and broader economic challenges.
Recent Q3 Performance: On October 30, DAY shares surged by over 7% following the release of Q3 results. The company announced an adjusted EPS of $0.47, surpassing Wall Street’s expectation of $0.45, with revenues hitting $440 million—better than the predicted $428.4 million. For Q4, revenue is projected to be between $452 million and $457 million, leading to an estimated total revenue of $1.8 billion for the full year.
Market Outlook: Analysts maintain a cautiously optimistic stance on DAY stock, reflected in a “Moderate Buy” rating. Among the 19 analysts following the stock, nine recommend “Strong Buy,” one suggests “Moderate Buy,” and nine indicate a “Hold” rating.
Price Target Analysis: The average price target set at $84.29 suggests a potential upside of 19.7% from current price points.
On the date of publication,
Kritika Sarmah
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 here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
