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Ceridian (CDAY) To Report Earnings Tomorrow: Here Is What To Expect


Kayode Omotosho /
2022/05/03 7:04 am EDT
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Online payroll and human resource software provider Ceridian (NYSE:CDAY) will be announcing earnings results tomorrow after market close. Here's what to expect.

Last quarter Ceridian reported revenues of $282.1 million, up 26.6% year on year, beating analyst revenue expectations by 2.56%. It was a solid quarter for the company, with accelerating customer growth and a decent beat of analyst estimates. The company added 207 customers to a total of 5,434.

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 23.4% year on year to $289.4 million, improving on the 5.29% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.49%.

Looking at Ceridian's peers in the finance and hr software segment, only Paychex has so far reported results, delivering top-line growth of 14.7% year on year, and beating analyst estimates by 4.64%. The stock traded up 2.88% on the results. Read our full analysis of Paychex's earnings results here.

The technology sell-off has been putting pressure on stocks since November and software stocks have not been spared, with share price down on average 16.9% over the last month. Ceridian is down 18.2% during the same time, and is heading into the earnings with analyst price target of $86.1, compared to share price of $57.33.

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.