Why Ceridian (CDAY) Stock Is Falling Today

Petr Huřťák /
2023/05/04 9:52 am EDT

What Happened:

Shares of online payroll and human resource software provider Ceridian (NYSE:CDAY) fell 5.47% in the after-market session after the company reported first-quarter results that beat analysts' revenue estimates. Customer growth also came in slightly better. However, gross margin, free cash flow, and earnings per share (EPS) were below Consensus. In addition, revenue guidance for the next quarter fell short of expectations, and the full year guidance was inline. Overall, it was a weaker quarter for the company.

What is the market telling us:

Ceridian's shares are very volatile and over the last year have had 26 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Ceridian is down 2.03% since the beginning of the year, and at $59.96 per share it is trading 23.1% below its 52-week high of $77.99 from February 2023. Investors who bought $1,000 worth of Ceridian's shares 5 years ago would now be looking at an investment worth $1,770.

Is now the time to buy Ceridian? Access our full analysis of the earnings results here, it's free.