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Dayforce to Report Q1 Earnings: Buy Now or Wait for Results?
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Dayforce (DAY - Free Report) is set to report its first-quarter 2025 results on May 7.
DAY expects first-quarter 2025 revenues between $421 million and $427 million, indicating growth of 13.5-15% on a GAAP basis and a 15.5-17% rise on a constant-currency basis.
The consensus mark for Dayforce’s first-quarter revenues is pegged at $477.63 million, indicating an increase of 10.69% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for DAY’s first-quarter earnings is pegged at 56 cents per share, unchanged over the past 30 days and indicating year-over-year growth of 30.23%.
DAY beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 21.50%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Let us see how things have shaped up for the upcoming announcement.
Key Factors to Note for DAY’s Q1 Results
Dayforce entered 2025 with a sales pipeline nearly four times its quarterly sales target, reflecting strong demand and positive customer engagement early in the year. Its January sales growth outpaced revenue growth, signaling healthy momentum in deal activity and client acquisition. This early strength in pipeline execution is expected to have benefited Dayforce’s performance in the first quarter of 2025.
DAY’s continued focus on profitable growth, evidenced by a rise in adjusted EBITDA projection to 32% in the first quarter of 2025, is positive. This trajectory of improving profitability is expected to have supported margin enhancement and the bottom-line performance in the to-be-reported quarter.
The company is deepening its AI capabilities and regulatory support through tools like Dayforce Co-Pilot. These advancements are expected to have reinforced platform adoption and contributed to top-line growth in the first quarter of 2025.
Dayforce's ability to grow recurring revenue per customer by 11% and increase gross retention to 98% in the fourth quarter of 2024 indicates strong product value and client confidence. This momentum is anticipated to have contributed to DAY’s financial performance in the quarter under review.
Nevertheless, unfavorable foreign currency fluctuations, particularly involving Canadian dollar-denominated revenues, are expected to reduce 2025 revenues by 200 basis points. This pressure is likely to have resulted in a proportional drag on Dayforce’s top-line growth in the first quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.
Dayforce has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
STNE is scheduled to release results for the first quarter of 2025 on May 8. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 32 cents per share, suggesting year-over-year growth of 10.34%. The estimate has moved up 18.5% over the past 30 days.
HealthStream (HSTM - Free Report) currently has an Earnings ESP of +2.13% and a Zacks Rank #2.
HSTM is set to report first-quarter 2025 results on May 6. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 16 cents per share. The consensus estimate indicates a year-over-year decline of 5.88%.
Baidu (BIDU - Free Report) has an Earnings ESP of +8.67% and a Zacks Rank #2 at present.
BIDU is set to report first-quarter 2025 results on May 21. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.96 per share, up 9.5% over the past 30 days. The estimate indicates a year-over-year decline of 28.99%.
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Dayforce to Report Q1 Earnings: Buy Now or Wait for Results?
Dayforce (DAY - Free Report) is set to report its first-quarter 2025 results on May 7.
DAY expects first-quarter 2025 revenues between $421 million and $427 million, indicating growth of 13.5-15% on a GAAP basis and a 15.5-17% rise on a constant-currency basis.
The consensus mark for Dayforce’s first-quarter revenues is pegged at $477.63 million, indicating an increase of 10.69% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for DAY’s first-quarter earnings is pegged at 56 cents per share, unchanged over the past 30 days and indicating year-over-year growth of 30.23%.
Dayforce, Inc. Price and EPS Surprise
Dayforce, Inc. price-eps-surprise | Dayforce, Inc. Quote
DAY beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 21.50%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Let us see how things have shaped up for the upcoming announcement.
Key Factors to Note for DAY’s Q1 Results
Dayforce entered 2025 with a sales pipeline nearly four times its quarterly sales target, reflecting strong demand and positive customer engagement early in the year. Its January sales growth outpaced revenue growth, signaling healthy momentum in deal activity and client acquisition. This early strength in pipeline execution is expected to have benefited Dayforce’s performance in the first quarter of 2025.
DAY’s continued focus on profitable growth, evidenced by a rise in adjusted EBITDA projection to 32% in the first quarter of 2025, is positive. This trajectory of improving profitability is expected to have supported margin enhancement and the bottom-line performance in the to-be-reported quarter.
The company is deepening its AI capabilities and regulatory support through tools like Dayforce Co-Pilot. These advancements are expected to have reinforced platform adoption and contributed to top-line growth in the first quarter of 2025.
Dayforce's ability to grow recurring revenue per customer by 11% and increase gross retention to 98% in the fourth quarter of 2024 indicates strong product value and client confidence. This momentum is anticipated to have contributed to DAY’s financial performance in the quarter under review.
Nevertheless, unfavorable foreign currency fluctuations, particularly involving Canadian dollar-denominated revenues, are expected to reduce 2025 revenues by 200 basis points. This pressure is likely to have resulted in a proportional drag on Dayforce’s top-line growth in the first quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.
Dayforce has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
StoneCo (STNE - Free Report) has an Earnings ESP of +6.25% and presently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
STNE is scheduled to release results for the first quarter of 2025 on May 8. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 32 cents per share, suggesting year-over-year growth of 10.34%. The estimate has moved up 18.5% over the past 30 days.
HealthStream (HSTM - Free Report) currently has an Earnings ESP of +2.13% and a Zacks Rank #2.
HSTM is set to report first-quarter 2025 results on May 6. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 16 cents per share. The consensus estimate indicates a year-over-year decline of 5.88%.
Baidu (BIDU - Free Report) has an Earnings ESP of +8.67% and a Zacks Rank #2 at present.
BIDU is set to report first-quarter 2025 results on May 21. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.96 per share, up 9.5% over the past 30 days. The estimate indicates a year-over-year decline of 28.99%.