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Minneapolis, Minnesota-based Dayforce Inc. (DAY) is a human capital management software company that offers various cloud-based solutions, including payroll and workforce management. With a market cap of $8.4 billion, Dayforce’s operations span the U.S., Canada, and internationally. It is expected to announce its Q2 earnings before the market opens on Wednesday, July 31.
Ahead of the event, analysts expect Dayforce to report a profit of $0.18 per share, up 200% from $0.06 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections in two of the past four quarters while missing on other two occasions. Its EPS for the last reported quarter missed the consensus estimate by 8.7%.
Looking ahead to fiscal 2024, analysts expect Dayforce to report an EPS of $0.90, up 38.5% from $0.65 in fiscal 2023. In fiscal 2025, its EPS is expected to grow 27.8% year over year to $1.15.
DAY stock is down 20.9% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 16.5% gains and the S&P 500 Technology Sector SPDR’s (XLK) 17% returns over the same time frame.
Despite beating sales targets, Dayforce stock fell 6% following the release of its Q1 earnings on May 1. Although the company saw a 28.3% dip in net income, it reported robust growth of 16.4% in total revenue compared to the year-ago quarter.
The consensus opinion on Dayforce stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 16 analysts covering the stock, nine recommend a “Strong Buy,” one advises a “Moderate Buy,” and six suggest a “Hold” rating. This configuration is slightly more bullish than a month ago when eight analysts recommended a “Strong Buy.”
The average target price for Dayforce is $68.53, indicating a potential upside of 29% from the current price levels.
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.
