Online payroll and human resource software provider Ceridian (NYSE:CDAY) will be reporting results tomorrow after market hours. Here's what to look for.
Last quarter Ceridian reported revenues of $365.9 million, up 21.5% year on year, beating analyst revenue expectations by 2.13%. It was a slower quarter for the company, with decelerating customer growth and a decline in its gross margin. The company added 93,000 customers to a total of 6,272,000.
Is Ceridian buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Ceridian's revenue to grow 17% year on year to $369.4 million, slowing down from the 22.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.
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 2.35%.
Looking at Ceridian's peers in the finance and HR software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Paychex (NASDAQ:PAYX) delivered top-line growth of 6.62% year on year, beating analyst estimates by 0.97%, and Workiva (NYSE:WK) reported revenues up 19.1% year on year, exceeding estimates by 1.65%. Paychex traded flat on the results, and Workiva was down 3.33%.
Read the full analysis of Paychex's and Workiva's results on StockStory.
There has been a stampede out of high valuation technology stocks, and while some of the finance and HR software stocks have fared somewhat better, they have not been spared, with share price declining 8.09% over the last month. Ceridian is down 7.05% during the same time, and is heading into the earnings with analyst price target of $82.6, compared to share price of $63.14.
The author has no position in any of the stocks mentioned.