FX.co ★ Dayforce Falls To Loss In Q2, Yet Adj. EPS Beats Estimate; Stock Up

Dayforce, Inc. (DAY) reported a net loss for the second quarter on Wednesday, contrasting with the profit recorded in the same period last year. This shift occurred due to higher expenses, despite growth in revenues. Adjusted earnings per share, however, surpassed market expectations. The company also forecasted revenue increases for both the third quarter and the full fiscal year.

At present, Dayforce shares are trading at $59.99, reflecting a gain of over 12% on a trading volume of 884,101. This follows a closing price of $53.68 the previous day.

In a separate statement, Dayforce announced that its board of directors has approved a share repurchase program, authorizing the buyback of up to $500 million of its common stock.

For the quarter, the human capital management technology firm reported a net loss of $1.8 million, or $0.01 per share. This is in stark contrast to net earnings of $3.1 million, or $0.02 per share, from the same period last year. On an adjusted basis, earnings amounted to $76.2 million, or $0.48 per share.

According to a survey conducted by Thomson Reuters, the consensus estimate among 15 analysts was an adjusted earnings per share of $0.36, typically excluding one-time items.

Total revenue rose by 16% to $423.3 million, up from $365.9 million the previous year, surpassing analysts' expectations of $417.54 million.

The approved share repurchase program does not have a specified expiration date, allowing the company to repurchase shares of its common stock periodically through open market purchases or privately negotiated transactions.

Looking ahead to the third quarter, Dayforce anticipates revenue in the range of $425 to $430 million, marking a 13 to 14 percent increase. Adjusted EBITDA is forecasted to be between $115 and $125 million. Wall Street analysts predict revenues of $430.7 million for the same period.

For the full fiscal year, Dayforce has projected revenue growth of 15%, estimating a range between $1.736 billion and $1.746 billion. Analysts are looking for a revenue figure of approximately $1.74 billion.