Ceridian (CDAY) Reports Q4: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2023/02/07 4:22 am EST

Online payroll and human resource software provider Ceridian (NYSE:CDAY) will be reporting results today after market close. Here's what to look for.

Last quarter Ceridian reported revenues of $315.6 million, up 22.7% year on year, beating analyst revenue expectations by 3.28%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in gross margin. The company added 120 customers to a total of 5,848.

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 15.2% year on year to $325 million, slowing down from the 26.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.

Ceridian Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.94%.

Looking at Ceridian's peers in the finance and HR software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Paylocity delivered top-line growth of 39.2% year on year, beating analyst estimates by 5.13% and Bill.com reported revenues up 66.1% year on year, exceeding estimates by 6.99%. Paylocity traded flat on the results, Bill.com was down 19.8%. Read our full analysis of Paylocity's results here and Bill.com's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 20.7% over the last month. Ceridian is up 17.7% during the same time, and is heading into the earnings with analyst price target of $82.70, compared to share price of $74.01.

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