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Ceridian (CDAY) Q2 Earnings: What To Expect


Adam Hejl /
2022/08/02 4:15 am EDT
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Online payroll and human resource software provider Ceridian (NYSE:CDAY) will be reporting results tomorrow after the bell. Here's what to expect.

Last quarter Ceridian reported revenues of $293.3 million, up 25% year on year, beating analyst revenue expectations by 1.33%. It was a slower quarter for the company, with a decline in gross margin and decelerating customer growth. The company added 175 customers to a total of 5,609.

Is Ceridian buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Ceridian's revenue to grow 17.6% year on year to $294.5 million, slowing down from the 30% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.

Ceridian Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.41%.

With Ceridian being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software stocks, but the whole sector has been hit hard on fears of higher interest rates, with stocks down on average 3.08% over the last month. Ceridian is up 9.28% during the same time, and is heading into the earnings with analyst price target of $70.2, compared to share price of $55.58.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.