Dayforce’s Q3 2024 Earnings Forecast: Strong Growth Expected
Dayforce DAY is preparing to announce its third-quarter 2024 earnings on Oct. 30. The company anticipates revenues between $425 million and $430 million, indicating a growth rate between 13% and 14% when adjusted for GAAP and constant currency.
The Zacks Consensus Estimate for its third-quarter earnings has remained steady at 45 cents per share over the past two months, reflecting a 21.62% increase from last year’s figures.
Revenue predictions stand at $428.43 million, marking a 13.49% increase from the previous year.
Analyzing Dayforce’s Price and Earnings Surprises
Dayforce has achieved earnings that surpassed the Zacks Consensus Estimate in three out of the last four quarters, with an average surprise of 27.28%.
Stay informed on all quarterly releases: Check the Zacks Earnings Calendar.
Key Factors for Upcoming Results
In the first half of 2024, Dayforce implemented over 200 compliance updates, showcasing its dedication to helping clients meet regulatory demands. This effort is crucial for attracting and retaining clients in a tightly regulated market, likely contributing positively to DAY’s revenue growth in the upcoming quarter.
Recently, Dayforce launched its payroll services in Singapore, effective in expanding its customer base within the Asia-Pacific region. This move is expected to unlock new revenue streams in a rapidly growing market, where efficient payroll solutions are in high demand.
The company has strategically focused on sectors like retail, manufacturing, and hospitality, which exhibit resilience in demand. These targeted approaches are essential for navigating economic uncertainties, supporting the firm’s bottom-line growth.
Encouragingly, Dayforce’s positive momentum from the second quarter, characterized by enhanced revenues and profitability, is likely to carry into the third quarter. Improved adjusted EBITDA, along with robust free cash flow, reflects solid operational efficiency and financial health.
Analyzing DAY Stock’s Potential
According to the Zacks model, a positive Earnings ESP combined with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) generally increases the likelihood of an earnings beat. However, this is not the case for Dayforce.
Currently, Dayforce holds an Earnings ESP of 0.00% and a Zacks Rank of #3.
Stocks Worth Watching
Consider these companies that have favorable conditions for exceeding earnings expectations in their upcoming releases:
Shopify SHOP has an Earnings ESP of +4.13% and holds a Zacks Rank of #1. Shopfy’s shares have increased by 1.5% year to date and will announce its earnings on Nov. 12.
Meta Platforms MET has an Earnings ESP of +2.83% and a Zacks Rank of #2. Its stock has surged 66.1% year to date, with earnings scheduled for Oct. 30.
Garmin GRMN exhibits an Earnings ESP of +1.03% and is ranked #3. Garmin shares are up 29.8% year to date and will report earnings on Oct. 30.
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Garmin Ltd. (GRMN) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
Dayforce, Inc. (DAY) : Free Stock Analysis Report
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